U.S. import prices remained stable in June following a 0.2 percent decline in May as lower energy prices offset a recovery in food costs, the Bureau of Labor Statistics revealed. Import prices rose 1.6 percent year-on-year in June, following a 1.4 percent annual increase in May.
The moderation in U.S. import prices signals a decline in inflation, which could further support the Federal Reserve’s case for an interest rate cut in September. In addition, data last week revealed that the consumer price index in June declined for the first time in four years while producer prices rose.
Import prices of fuel declined 1 percent in June after rising by 0.4 percent in May with both crude petroleum and natural gas prices declining. Meanwhile, import prices of food rose 0.7 percent after a 1.6 percent decline in May. The U.S. import prices for capital goods remained stable in June following a 0.2 percent drop in May, while the cost of motor vehicles, parts and engines rose 0.1 percent. Consumer goods import prices declined 0.1 percent.
The report also reveals that export prices fell 0.5 percent in June after declining 0.7 percent in May. In the 12 months leading up to June, export prices rose 0.7 percent after gaining 0.5 percent in June.
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