U.S. import-price index rises less than expected in June

The Labor Department reported on Thursday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, rose 1.0 percent m-o-m in June, following a revised 1.4 percent m-o-m increase in May (originally a 1.1 percent m-o-m gain). Prices for U.S. imports have not recorded a decline since October 2020. Economists had expected prices to grow 1.2 percent m-o-m last month.

According to the report, the June gain was driven by higher prices for both fuel (+4.7 percent m-o-m) and nonfuel (+0.7 percent m-o-m) imports.

Over the 12-month period ended in June, import prices jumped 11.2 percent, with higher fuel (+85.1 percent) and nonfuel (+6.5 percent; the largest 12-month gain since August 2008) prices contributing to the jump.

Meanwhile, the price index for U.S. exports rose 1.2 percent m-o-m in June, following a revised 2.2 percent m-o-m climb in the previous month (originally a 2.2 percent m-o-m surge). U.S. export prices have not recorded a monthly decrease since April 2020. Economists had forecast export prices to rise 1.2 percent m-o-m in May.

The June gain was driven by higher prices for both agricultural exports (+1.5 percent m-o-m) and nonagricultural exports (+1.1 percent m-o-m).

Over the past 12 months, the price index for exports jumped 16.8 percent, reflecting surges in prices of both agricultural exports (+33.5 percent) and nonagricultural exports (+15.0 percent).