Why are US import prices FALLING?

Question

OK I'm talking about NON-PETROLEUM products, but despite the falling dollar, non-petroleum import prices fell 0.1% in August and fell 0.2% in September, and for the year ending September rose only 2.0%, less than general inflation.

So considering how everyone keeps saying that the falling dollar will make us "poorer" or "cause inflation" or reduce the amount of Christmas presents I can buy, how come the truth is the opposite and imports are getting cheaper?

Answer 1

http://www.bls.gov/news.release/ximpim.nr0.htm
It is puzzling but there are a couple of possibilities.

The biggest drop in the dollar is recent and the imports were contracted months ago priced in dollars.

That exporters of things like cars from Japan have lowered their prices so they will remain competitive in US markets.

Answer 2

If the price of US imports is falling, then that means the countries we are importing from are experiencing depreciation in their currencies. When the dollar slides, as it no doubt is, the price of our exports get cheaper making them more attractive to foreign consumers, hence we should see a rise in US exports.

With that said, just because the dollar is sliding shouldn't be cause for talk about spending Christmas in the poorhouse. The dollar will be fine. When people start demanding more of our exports because of the lower price, the increase in demand will make the price rise. In other words, the USD will appreciate as demand for our exports grow.

Exchange rates ebb and flow literally all the time because the foreign exchange market never closes, and it's perfectly normal for currencies to appreciate/depreciate.