Import prices in the U.S. unexpectedly saw a modest decrease in the month of June, according to a report released by the Labor Department on Tuesday, with a drop in non-fuel prices more than offsetting an increase in fuel prices.
The report said import prices edged down by 0.1 percent in June following a 1.2 percent increase in May. Economists had expected prices to inch up by 0.1 percent.
Non-fuel import prices led the overall decrease in import prices in June, falling by 0.2 percent after coming in unchanged in the previous month.
The Labor Department said non-fuel import prices have not recorded an increase since a 0.1 percent uptick in July of 2014.
Lower prices for non-fuel industrial supplies and materials and foods, feeds, and beverages led the decline in non-fuel import prices in June.
Meanwhile, the report said fuel import prices increased by 0.7 percent in June after surging up by 10.8 percent in May.
Higher prices for petroleum and natural gas both contributed to the advance, rising by 0.8 percent and 0.3 percent, respectively.
The Labor Department also said export prices fell by 0.2 in June after climbing by 0.6 percent in the previous month. Export prices had been expected to rise by 0.2 percent.
The unexpected decrease primarily reflected a continued drop in prices for agricultural exports, which tumbled by 1.5 percent in June after slumping by 1.2 percent in May.
The drop reflected sharply lower prices for soybeans, fruit, and meat, which more than offset a jump in wheat prices.
Prices for non-agricultural exports also edged down by 0.1 in June after climbing by 0.7 percent in the previous month.
The Labor Department said lower non-agricultural industrial supplies and materials prices more than offset higher prices for consumer goods and automotive vehicles.
Compared to the same month a year ago, import prices were down by 10.0 percent in June, while export prices were down by 5.7 percent.
The material has been provided by InstaForex Company – www.instaforex.com