Import and export prices decrease in June

U.S. import prices declined for the second consecutive month in June, decreasing 1.3 percent. The drop was driven by declining fuel prices, although a downturn in nonfuel prices also contributed to the overall decrease. Export prices also fell in June, edging down 0.2 percent following three consecutive monthly increases.

In June, prices of U.S. imports fell 1.3 percent, after a 0.5-percent drop the previous month. The decrease was the largest monthly decline since a 1.3-percent decline in January 2009, which was also the last time the index fell in consecutive months. Despite the recent declines, import prices advanced 4.5 percent for the year ended in June.

Import fuel prices fell 4.0 percent in June, after a similar 4.1-percent decrease in May. The June decline was led by a 4.4-percent drop in petroleum prices and was the largest monthly decrease for that index since a 4.6-percent drop in January 2009. Partially offsetting the decline in petroleum prices, natural gas prices rose 1.5 percent in June. Despite the recent decreases, overall fuel prices increased 11.6 percent over the past year.

In June, the price index for import prices excluding fuel fell 0.6 percent, the first monthly decline since a 0.2-percent decrease in July 2009 and the largest since a 0.6-percent drop in March 2009. A 1.5-percent downturn in nonfuel industrial supplies and materials was the largest contributor to the June decline. For the 12 months ended in June, nonfuel import prices advanced 2.8 percent.