With fuel prices showing a notable pullback, the Labor Department released a report on Thursday showing a modest decrease in U.S. import prices in the month of July.
The Labor Department said import prices edged down by 0.2 percent in July after inching up by 0.1 percent in June. Economists had expected import prices to dip by 0.3 percent.
The modest drop in import prices was driven by falling fuel prices, which tumbled by 1.2 percent in July after surging up by 1.0 percent in June.
Petroleum prices led the way lower, falling by 1.2 percent. The decrease more than offset a 1.8 percent jump in natural gas prices.
Excluding the pullback in fuel prices, the report said import prices were unchanged for the third time in the past four months in July after edging down by 0.1 percent in June.
Lower automotive vehicle prices offset higher prices for non-fuel industrial supplies and materials, foods, feeds, and beverages, and consumer goods.
Meanwhile, the report said export prices came in unchanged in July following a 0.4 percent drop in the previous month. Export prices had been expected to slip 0.2 percent.
The Labor Department said the unchanged reading came as declining agricultural prices offset higher non-agricultural prices.
Prices for agricultural exports plunged by 2.2 percent in July after tumbling by 1.7 percent in June, reflecting sharp declines in prices for soybeans, corn, and cotton.
At the same time, the report said prices for non-agricultural exports rose by 0.3 percent in July after dipping by 0.3 percent in the previous month.
The Labor Department said the increase was led by higher prices for non-agricultural industrial supplies and materials and consumer goods.
Compared to the same month a year ago, import prices were up by 0.8 percent in July. Export prices were up by 0.4 percent year-over-year.
Peter Boockvar, managing director at the Lindsey Group, said, "Bottom line, while we can take comfort that we're not importing inflation, it's been the services side of the U.S. economy that has been the sticky side of inflation."
The Labor Department is scheduled to release its monthly report on producer price inflation on Friday followed by its consumer price inflation report next Tuesday.
For comments and feedback contact: editorial@rttnews.com
Business News
April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.