U.S. Import Prices Drop 0.9% In August Amid Sharply Lower Fuel Prices

(RTTNews) - Reflecting a steep drop in prices for imported fuel, the Labor Department released a report on Friday showing a notable decrease in U.S. import prices in the month of August.

The report said import prices fell by 0.9 percent in August following a revised 0.3 percent drop in July. Economists had expected import prices to decrease by about 1.0 percent.

The continued decrease in import prices was largely due to the sharp drop in fuel prices, which tumbled by 4.6 percent in August after slumping by 1.7 percent in July.

The Labor Department said the drop in fuel prices in August was the largest one-month decrease since an 8.5 percent decline in June of 2012.

Petroleum and natural gas prices both contributed to the decrease in fuel prices, falling by 4.4 percent and 11.6 percent, respectively.

Excluding the steep drop in fuel prices, the report said import prices edged up by 0.1 percent in August after coming in unchanged in July.

The modest uptick, the first increase since March, reflected higher prices for foods, feeds, and beverages, non-fuel industrial supplies and materials, and automotive vehicles.

Meanwhile, the Labor Department said export prices slid by 0.5 percent in August after inching up by a revised 0.1 percent in the previous month. Export prices were expected to dip by 0.2 percent.

The report showed another notable decrease in prices for agricultural exports, which plunged by 2.8 percent in August after recording declines of 2.0 percent and 1.7 percent in July and June.

The Labor Department said falling prices for soybeans, fruit and corn were major contributors to the recent drop in agricultural prices.

Prices for non-agricultural exports also fell by 0.3 percent in August after rising by 0.3 percent in July, with the pullback reflecting lower prices for non-agricultural industrial supplies and materials and automotive vehicles.

Compared to the same month a year ago, import prices were down by 0.4 percent in August, while export prices were up by 0.4 percent year-over-year.

Next week, the Labor Department is scheduled to release more closely watched reports on wholesale and consumer price inflation in the month of August.