US import prices flat in June
US IMPORT prices were unchanged in June as lower prices for energy products offset a rebound in the cost of food, the Bureau of Labor Statistics said on Tuesday (Jul 16).
The flat reading in import prices followed a 0.2 per cent drop in May. Economists polled by Reuters had expected import prices, which exclude tariffs, to dip 0.1 per cent.
In the 12 months through June, import prices increased 1.6 per cent. That followed a 1.4 per cent advance in May.
Moderate import prices supported views that inflation was on a downward path and could provide the Federal Reserve room to cut interest rates in September.
Government data last week showed consumer prices fell in June for the first time in four years. Producer prices rose last month, but details of the reports were much more benign.
Imported fuel prices dropped 1.0 per cent after rising 0.4 per cent in May. Crude petroleum and natural gas prices both declined. The cost of imported food increased 0.7 per cent after dropping 1.6 per cent in May.
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Prices for imported capital goods were unchanged. That followed a 0.2 per cent fall in May. The cost of motor vehicles, parts and engines edged up 0.1 per cent. Imported consumer goods prices slipped 0.1 per cent.
Excluding fuels and food, import prices were unchanged. These so-called core import prices dipped 0.1 per cent in May.
Core import prices rose 0.6 per cent year on year in June. They are being kept in check by the US dollar strength against the currencies of the US’ main trade partners this year as the Federal Reserve has kept interest rates elevated.
SEE ALSO
The report also showed that export prices fell 0.5 per cent in June after declining 0.7 per cent in May. In the 12 months through June, export prices rose 0.7 per cent after gaining 0.5 per cent in June. REUTERS
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