U.S. import prices dropped by 0.2 percent in June, and export prices inched down by 0.1 percent following May declines of 0.7 percent and 0.5 percent, respectively, according to the Bureau of Labor Statistics.
According to the bureau, the June drop in import prices was derived from lower non-fuel prices, whereas declines from the past two months had been attributed to changes in the price of fuel. Non-fuel import prices declined by 0.3 percent in June, while fuel prices rose by 0.1 percent. Even with the overall drop in import pricing, results for pricing were up by 0.2 percent, year over year.
Import prices from most major areas in the world declined in June. Japan imports continued their downward trend, falling by 0.5 percent, while import prices from China only fell by 0.1 percent, but have accounted for a 1-percent decline over the past year. Mexican (0.5 percent), Canadian (0.2 percent) and European (0.1 percent) prices also declined in June.
For exports, a 0.6-percent increase in agricultural prices was offset by a 0.2-percent drop in non-agricultural export prices. The non-agricultural price drop was lead by a 0.5-percent drop in industrial supplies a material pricing. - Jon Ross