The Labor Department reported on Friday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, fell 0.5 percent m-o-m in October, following a revised 0.1 percent m-o-m gain in September (originally a 0.2 percent m-o-m advance). Economists had expected prices to drop 0.2 percent m-o-m last month.

According to the report, the October decline was driven by both lower import fuel prices (-2.9 percent m-o-m) and lower prices for nonfuel imports (-0.2 percent m-o-m).

Over the 12-month period ended in October, import prices dropped 3.0 percent, weighed down by declines in both fuel (-13.7 percent) and nonfuel (-1.4 percent) prices.

Meanwhile, the price index for U.S. exports edged down 0.1 percent m-o-m in October, following an unrevised 0.2 percent m-o-m fall in the previous month.

Lower Prices for nonagricultural exports (-0.3 percent m-o-m) in October offset higher agricultural export prices (+1.9 percent m-o-m).

Over the past 12 months, the price index for exports dropped 2.2 percent, weighed down by lower prices for nonagricultural exports (-2.7 percent), while agricultural prices surged (+2.2 percent).