Courtesy of Mish.
The BLS reports the U.S. Import and Export Price Indexes both advanced in July.
All Imports
U.S. import prices continued to advance in July, ticking up 0.1 percent. Prices for imports have not recorded a monthly decrease over the past 5 months and increased 3.0 percent since last declining in February. Prior to July, the increases were driven by rising fuel prices. In contrast, in July, nonfuel prices led the advance and fuel prices recorded a decrease. Despite the recent increases, import prices remain down on an over-the-year basis, falling 3.7 percent over the past 12 months. Import prices have not recorded a 12-month advance since 2 years ago when the index rose 0.9 percent between July 2013 and July 2014.
All Imports Excluding Fuel
The price index for nonfuel imports rose 0.3 percent in July following a 0.2-percent drop in June and a 0.3-percent advance in May. The 0.3-percent increases were the largest 1-month advances since the index rose 0.3 percent in March 2014. The last time the index increased more than 0.3 percent was a 0.4-percent rise in March 2012. The July advance was led by higher prices for nonfuel industrial supplies and materials; and foods, feeds, and beverages. In contrast, import finished goods prices decreased in July. Prices for nonfuel imports declined 1.2 percent over the past year.
Fuel Imports
Fuel prices decreased 2.5 percent in July, the first monthly decline since the index fell 6.8 percent in February. Before the downturn, import fuel prices rose 47.1 percent from February to June. In July, a 3.6-percent drop in petroleum prices drove the downturn in fuel prices and more than offset a 31.4 percent increase in the price index for natural gas. Prices for import fuel decreased 22.3 percent for the year ended in July. A 23.1-percent decline in petroleum prices over the period and a 17.5-percent drop in natural gas prices each contributed to the overall fall in fuel prices.
All Exports
Prices for U.S. exports increased 0.2 percent in July, after rising 2.4 percent over the 3 previous months. In July, higher nonagricultural prices more than offset a decrease in agricultural prices. The price index for exports last recorded a 1-month decline when the index edged down 0.1 percent in March. Even accounting for the recent advances, export prices declined 3.0 percent over the past 12 months and have not increased on an over-the-year basis since the index advanced 0.4 percent in August 2014.
