The U.S. Labor Department's latest report, released on Tuesday, indicates that import prices in June remained unexpectedly steady.
According to the report, import prices showed no change in June following a revised 0.2 percent decline in May. Economists had anticipated a 0.2 percent rise in import prices, contrasting with the initially reported 0.4 percent drop for the preceding month.
The stabilization in import prices was attributed to a significant decrease in fuel import prices, which was counterbalanced by an increase in non-fuel import prices.
The Labor Department specified that fuel import prices fell by 1.0 percent while non-fuel import prices saw a 0.2 percent increase.
Year-over-year, import prices in June were up by 1.6 percent, marking the most substantial annual increase since December 2022.
"Although the relationship between import prices and consumer prices is not direct, this import price report should bolster confidence that inflationary pressures in the broader economy are not accelerating, potentially allowing the Federal Reserve to initiate rate cuts in September," commented Matthew Martin, a U.S. Economist at Oxford Economics.
In contrast, the Labor Department reported a 0.5 percent decline in export prices for June, following a revised 0.7 percent decrease in May.
Economists had projected a slight 0.1 percent reduction in export prices compared to the 0.6 percent drop initially reported for the prior month.
While agricultural export prices rose by 0.6 percent, non-agricultural export prices decreased by 0.6 percent, as highlighted in the report.
Despite recent declines, U.S. export prices have seen a 0.7 percent increase over the past year.
