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Several economists argue that positive supply shocks—especially falling import prices account for all America's disinflation over the past couple of years.
Inflation, which has been on a downward trend reflecting falling import prices and contained wage pressures (with core inflation stable around 1.2%), is expected to pick up and remain above that in the rest of the eurozone.
To some extent, the economy's performance was helped by factors that clearly were not going to last forever, including several years of extremely low oil prices, the downward pressure on compensation costs from the advent of managed health care and the way in which falling import prices helped drive inflation down after the global financial crisis a few years ago.
The six explain that away as household purchasing power being sustained by rapid increases in productivity and falling import prices, especially of oil.
Falling import costs have helped keep inflation in check in recent years as companies paid less for raw materials and were unable to raise their prices when faced with international competition.
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Export growth has stalled and falling imports speak of feeble demand.
Indeed, the recent rise in gas prices has taken place despite rising U.S. oil production and falling imports.
You cannot argue with the hard numbers of falling imports noted above, but maybe there are signs that the worst is past.
Meanwhile, higher exports and falling imports meant the UK's trade deficit more than halved in September – falling from £3bn to £1.4bn.
The gap narrowed by 73% in 2012 to €5.58bn helped by falling imports and lower interest payments after a sovereign debt cut, according to the Greek central bank.
Yet the improvements in the trade balance seen so far have largely been the result of falling imports rather than rising exports.
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