US export/import prices decline as signs of inflation are rare

U.S. import prices declined 0.2 percent in August, the U.S. Bureau of Labor Statistics reported today, after ticking up 0.1 percent in July. The August downturn was driven by lower fuel prices. Prices for U.S. exports decreased 0.8 percent in August following a 0.2-percent increase in July.

U.S. export prices decreased 0.8 percent in August, the first monthly drop since the index edged down 0.1 percent in March and the largest decline since the index fell 0.9 percent in January. In August, lower prices for both agricultural and nonagricultural exports contributed to the overall drop in
export prices. The price index for U.S. exports decreased 2.4 percent over the past year, the smallest 12- month decline since the index fell 1.7 percent in November 2014.

Exports Excluding Agriculture: Prices for nonagricultural exports decreased 0.4 percent in August, after rising 0.2 percent the previous month. The August decline in nonagricultural export prices was the first monthly drop since the index fell 0.6 percent in February. Lower prices for industrial supplies and materials, automotive vehicles, capital goods, and consumer goods all contributed to the August downturn. The price index for nonagricultural exports decreased 2.2 percent over the past 12 months, primarily driven by a 5.3-percent decline in nonagricultural industrial supplies and materials prices.