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UPDATE 1-US import, export prices fall fifth straight month

Published 01/14/2009, 08:54 AM
Updated 01/14/2009, 08:56 AM

(Adds more detail from report)

WASHINGTON, Jan 14 (Reuters) - U.S. import and export prices both fell for the fifth consecutive month in December, as costs for oil and many non-petroleum products tumbled, the U.S. Labor Department said on Wednesday.

Import prices dropped 4.2 percent after falling by a revised 7.0 percent in November. The December drop was less than the 5.3 percent decline expected by Wall Street analysts.

Over the past year, import prices have plunged a record 9.3 percent as global economic turmoil has cut into business and consumer demand.

Petroleum import prices dived 21.4 percent in December, which was also the fifth straight monthly decline, after plunging by a revised 28.5 percent in November.

In the last quarter of 2008, petroleum import prices declined 56.2 percent, the largest quarterly drop since Labor began tracking the data in 1982.

Non-petroleum import prices fell 1.1 percent in December, while prices for consumer goods other than autos barely increased, rising by 0.1 percent.

Over the past year, consumer good import prices have risen 2.2 percent, the largest increase since 1996.

Prices for U.S. exports fell 2.3 percent in December, led by steeper declines in export prices for agricultural goods, food and industrial supplies and materials. Wall Street analysts had expected a 2.0 percent decline.

Export prices fell 3.2 percent in 2008, the largest 12-month drop since December 1998.

(Reporting by Doug Palmer; Editing by Chizu Nomiyama)

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