U.S. import prices unexpectedly declined in July, while export prices recorded an even steeper fall, according to new figures released Tuesday by the Labor Department.
The latest data showed import prices decreased 0.4% during July, extending a revised 0.3% decline in June.
The result was considerably weaker than economists had anticipated. Analysts had forecast a modest 0.1% increase in import prices, compared with the 0.3% rise initially reported for June before that figure was revised lower.
Export Prices Record Sharp Monthly Drop
Price pressures were also notably weaker on the export side, with U.S. export prices falling 1.3% in July.
That followed a revised decline of 0.7% in June and was significantly below economists’ expectations for export prices to remain unchanged during the month.
The June export price figure had originally been reported as a 0.6% decrease.
The larger-than-expected declines in both import and export prices provide fresh evidence of easing price pressures in internationally traded goods, adding another data point for investors assessing the U.S. inflation outlook and the potential direction of Federal Reserve monetary policy.