U.S. Import Prices Dip In June, Export Prices Extend Slump

(RTTNews) - A report released by the Labor Department on Friday showed a modest decrease in U.S. import prices in the month of June as well as an extended slump in U.S. export prices.

The Labor Department said import prices dipped by 0.2 percent in June after falling by a revised 0.4 percent in May.

Economists had expected import prices to edge down by 0.1 percent compared to the 0.6 percent decrease originally reported for the previous month.

The modest decrease in import prices came as prices for non-fuel imports fell by 0.4 percent in June after coming in unchanged in May.

Lower prices for non-fuel industrial supplies and materials, consumer goods, capital goods, foods, feeds, and beverages and automotive vehicles all contributed to the decline.

The drop in prices for non-fuel imports more than offset a rebound in prices for fuel imports, which climbed by 0.8 percent in June after plummeting by 4.3 percent in June. Higher petroleum prices more than offset lower natural gas prices.

"Over the prior 12 months, lower fuel prices had provided most of the impetus downwards, but the fall in core prices highlights that deflation is broadening out as global supply chain conditions ease further," said Matthew Martin, U.S. Economist at Oxford Economics.

The report also said import prices in June were down by 6.1 percent compared to the same month a year ago, reflecting the largest yearly drop since May 2020.

Meanwhile, the Labor Department said export prices fell by 0.9 percent in June after tumbling by 1.9 percent in May. Export prices were expected to slip by 0.2 percent.

Prices for agricultural exports dove by 1.6 percent in June after plunging by 2.4 percent in May, while prices for non-agricultural exports slid by 0.9 percent in June after slumping by 1.9 percent in May.

Compared to the same month a year ago, export prices were down by 12.0 percent, reflecting the largest year-over-year decline since the 12-month percent change series was first published in September 1984.