Import prices fell 0.6%. Economists expected a 0.1% decline. Export prices fell 0.1%. Economists expected a 0.2% rise.
The BLS report on Import and Export Prices surprised economists with unexpected declines.
Import Prices
Key Points
Synopsis*: Import prices declined 0.6 percent in August, the largest monthly drop since the index fell 1.3 percent in January 2016*. The August decrease followed a 0.1-percent decline in July and was only the third monthly drop over the past 12 months. Prices for U.S. imports advanced 3.7 percent from August 2017 to August 2018 and have not recorded a 12-month decline since October 2016.
Fuel Imports: Import fuel prices decreased 3.9 percent in August, the first decline for the index since a 2.6- percent drop in March and the largest monthly decline since a 6.8-percent decrease in February 2016. Petroleum prices declined 3.9 percent in August, after increasing in each of the previous 4 months, and natural gas prices fell 6.3 percent following an 18.0-percent increase in July. Despite the downturn in August, fuel prices rose 30.6 percent over the past 12 months. The price index for petroleum increased 33.0 percent for the year ended in August, and prices for natural gas decreased 11.7 percent over the same period.
All Imports Excluding Fuel: Nonfuel import prices edged down 0.1 percent in August, after decreasing 0.3 percent in each of the previous 2 months. In August, the decline was driven by falling prices for nonfuel industrial supplies and materials, although lower capital goods prices also contributed. In contrast, the price index for foods, feeds, and beverages advanced in August. Despite the downward trend over the past 3 months, nonfuel import prices increased 0.9 percent between August 2017 and August 2018. The increase was led by a 6.4-percent rise in nonfuel industrial supplies and materials prices over the 12-month period.
Export Prices
Key Points
Synopsis: Prices for U.S. exports decreased 0.1 percent in August, after declining 0.5 percent in July. The July downturn was the first monthly drop since June 2017. In August, lower prices for nonagricultural exports more than offset higher agricultural prices. The price index for overall exports advanced 3.6 percent for the year ended in August and has not recorded a 12-month decline since a 0.2-percent decrease in November 2016.
