Import Prices Firm, Led by Fuel and Industrial Goods
The U.S. import price index increased by 0.4% in July, reversing two months of declines. Fuel import prices led the rise with a 2.7% monthly gain—petroleum up 2.4%, natural gas up 4.7%. Nonfuel import prices advanced 0.3%, reflecting higher costs for industrial supplies, consumer goods, and capital goods. Year-on-year, overall import prices were still down 0.2%, driven by a 12.1% drop in fuel prices. Meanwhile, export prices edged up just 0.1% on the month, with nonagricultural goods supporting the gain.
Export Gains Slow as External Demand Levels Off
Export prices rose only slightly in July, up 0.1%, after a 0.5% rise in June. Agricultural exports were flat on the month, while nonagricultural goods—particularly automotive and capital goods—provided some lift. Year-o