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U.S. Import Price Index declined 0.6% in August
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U.S. import prices declined 0.6 percent in August, the U.S. Bureau of Labor Statistics reported today, following a 0.1-percent decrease the previous month. Falling prices for both fuel and nonfuel imports contributed to the August decline. Prices for U.S. exports edged down 0.1 percent, after decreasing 0.5 percent in July.
Imports
Import prices declined 0.6 percent in August, the largest monthly drop since the index fell 1.3 percent in January 2016. The August decrease followed a 0.1-percent decline in July and was only the third monthly drop over the past 12 months. Prices for U.S. imports advanced 3.7 percent from August 2017 to August 2018 and have not recorded a 12-month decline since October 2016.
Fuel Imports: Import fuel prices decreased 3.9 percent in August, the first decline for the index since a 2.6-percent drop in March and the largest monthly decline since a 6.8-percent decrease in February 2016. Petroleum prices declined 3.9 percent in August, after increasing in each of the previous 4 months, and natural gas prices fell 6.3 percent following an 18.0-percent increase in July. Despite the downturn in August, fuel prices rose 30.6 percent over the past 12 months. The price index for petroleum increased 33.0 percent for the year ended in August, and prices for natural gas decreased 11.7 percent over the same period.
All Imports Excluding Fuel: Nonfuel import prices edged down 0.1 percent in August, after decreasing 0.3 percent in each of the previous 2 months. In August, the decline was driven by falling prices for nonfuel industrial supplies and materials, although lower capital goods prices also contributed. In contrast, the price index for foods, feeds, and beverages advanced in August. Despite the downward trend over the past 3 months, nonfuel import prices increased 0.9 percent between August 2017 and August 2018. The increase was led by a 6.4-percent rise in nonfuel industrial supplies and materials prices over the 12-month period.
Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials fell 0.8 percent in August following a 1.1-percent decline the previous month. The August decrease was led by a 1.9-percent drop in unfinished metals prices and a 2.6-percent decline in building materials prices.
Finished Goods: Import prices for finished goods categories were mostly unchanged in August. The price index for capital goods edged down 0.1 percent, after recording no change in July. Prices for consumer goods and automotive vehicles recorded no change in August.
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices advanced 0.4 percent in August following a 1.6-percent decline the previous month.
Posted: September 14, 2018 Friday 08:30 AM