US import prices decline further in June
US IMPORT prices fell in June as an increase in the cost of fuels was more than offset by declines elsewhere, the latest indication that inflationary pressures in the economy are abating.
Import prices dropped 0.2 per cent last month, the Labor Department said on Friday (Jul 14). Data for May was revised to show import prices declining 0.4 per cent instead of 0.6 per cent as previously reported.
Economists polled by Reuters had forecast import prices, which exclude tariffs, dipping 0.1 per cent. In the 12 months through June, import prices tumbled 6.1 per cent. That was the biggest year-on-year decline since May 2020 and followed a 5.7 per cent drop in May.
Annual import prices have now decreased for five straight months. The report added to data this week showing consumer and producer prices rising moderately in June in suggesting that the economy is shifting into a disinflationary environment.
Though inflation remains above the Federal Reserve’s 2 per cent target, easing price pressures have left most economists believing that an expected interest rate hike this month would be the last in the US central bank’s fastest monetary policy tightening cycle since the 1980s.
The Fed skipped raising rates in June, after hiking its policy rate by 500 basis points since March 2022. REUTERS
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