WASHINGTON – Import prices were flat in July, below the 0.1% reading expected and following a 0.1% decline in June, according to data released by the Bureau of Labor Statistics Tuesday.
The data suggest imported inflation growth remained tepid over the last two months after strong gains in April and May, even as the threat of tariffs escalated and energy prices advanced further. The data set is likely to get more attention when the full effect of the tariffs can be found in both the import and export price measures.
Overall fuel prices rose 1.6%, with petroleum prices up 0.9%, and natural gas prices up 36.7%.
However, import prices were down 0.1% excluding petroleum and down 0.3% excluding all fuels. There were declines in every category except a flat reading for vehicles and a 0.3% gain in consumer products.
Overall import prices were up 4.8% year/year in July after a 4.7% year/year gain the previous month, hitting their highest point since 5.1% in February 2012. But the gain was primarily energy driven. Prices excluding fuels were up 1.3% year/year and prices excluding petroleum were also up 1.3% year/year.
By region, prices for imports from most industrialized countries were generally steady. Import prices from Canada rose 0.1%, due to a 3.5% rise in non-manufacturing goods that was offset by a 1.0% drop in manufacturing goods. The latter could rise further as the impact of tariffs is seen.
There were mixed, but small movements, in import prices from most other trading partners. Prices from China and Mexico declined in the month.
Total export prices fell by 0.5% in July on a 5.3% plunge in agricultural export prices. Export prices excluding agriculture saw a flat reading. Export prices were up 4.3% from a year earlier, down from the 5.3% year/year gain in June. Export prices excluding agriculture were up 5.0% year/year, while agricultural prices were down 2.0% year/year.
