Prices for U.S. imports decreased 2.5 percent in December, after falling 1.8 percent in November and 1.4 percent in October, according to the U.S. Bureau of Labor Statistics. Each of the monthly decreases was driven by lower fuel prices. U.S. export prices declined 1.2 percent in December following a 0.8 percent drop the previous month.

The December decline was the largest monthly drop in import prices since a 4.6 percent drop in December 2008. Import prices have not recorded a monthly advance since rising 0.3 percent in June and fell 7.3 percent over the second half of 2014. The price index for imports fell 5.5 percent overall in 2014, the largest calendar-year drop since falling 10.1 percent in 2008.    

Import fuel prices decreased 15.1 percent in December, after declining 8.7 percent in November and 6.7 percent in October. The December decrease was led by a 16.6 percent decline in petroleum prices which more than offset a 15.3 percent increase in natural gas prices. Overall fuel prices fell 28.6 percent in 2014, the largest calendar-year decrease since a 47 percent drop in 2008. Petroleum prices decreased 30.1 percent for the year ended in December while prices for natural gas declined 1.6 percent over the same period

The price index for nonfuel imports decreased 0.1 percent in December, after falling 0.3 percent the previous month. The December drop was driven by lower prices for consumer goods, nonfuel industrial supplies and materials, and capital goods which more than offset rising foods, feeds and beverages prices. Overall nonfuel prices recorded no change in 2014 following a 1.2 percent decline the previous year. In 2014, lower prices for capital goods, automotive vehicles, and nonfuel industrial supplies and materials offset higher foods, feeds and beverages prices and prices for consumer goods.