With falling non-fuel prices more than offsetting higher fuel prices, the Labor Department released a report on Wednesday showing an unexpected decrease in U.S. import prices in the month of April.
The report said import prices fell by 0.3 percent in April following a revised 0.2 percent decrease in March. Economists had expected import prices to climb by 0.4 percent.
The unexpected decrease in import prices came as prices for non-fuel imports dropped by 0.4 percent for the second consecutive month.
The Labor Department said lower prices for non-fuel industrial supplies and materials, capital goods, foods, feeds, and beverages, and consumer goods all contributed to the decline.
On the other hand, the report said prices for fuel imports increased by 0.7 percent in April after jumping by 1.2 percent in March, continuing to recover from the sharp drop seen in previous months.
The continued increase in fuel import prices came as a 1.0 percent advance in petroleum prices more than offset a 7.0 percent drop in natural gas prices.
Meanwhile, the Labor Department also said export prices dropped by 0.7 percent in April after inching up by 0.1 percent in the previous month. Export prices had been expected to show another 0.1 percent uptick.
Prices for agricultural export prices decreased by 0.8 percent in April after tumbling by 1.7 percent in March, reflecting lower prices for meat, soybeans, and fruit.
The report said prices for non-agricultural exports also fell by 0.7 percent in April following a 0.2 percent uptick in the previous month.
The pullback was led by declining prices for non-agricultural industrial supplies and materials, capital goods, and consumer goods.
Compared to the same month a year ago, import prices were down by 10.7 percent in April, while export prices were down by 6.3 percent.
The material has been provided by InstaForex Company – www.instaforex.com