U.S. import prices fell by 0.2% in March on a 3.8% drop in fuel prices, according to data released by the Bureau of Labor Statistics Wednesday. Import prices were 0.2% higher excluding petroleum or all fuels.
Compared to a year ago, overall import prices were 4.2% higher, but prices excluding fuels rose just 1.0%, or 1.2% excluding just petroleum, a sign that underlying levels of imported inflation are not concerning.
The 0.2% drop in import prices was the result of declines in foods and consumer goods that offset gains in capital goods and industrial supplies excluding fuels. Auto import prices were unchanged in March.
Petroleum import prices fell 3.6%, the most since August, accompanied by a 11.0% drop in the relatively small natural gas price category.
Excluding the sharp dips in fuel prices and the 0.7% drop in foods and feeds prices, import prices were up 0.2%. The year-over-year rate of increase for this category was 0.8%, showing low inflation.
By region, prices for imports from Canada fell 1.3% to offset prices increases on imports from China (0.2%), Japan (0.2%), Mexico (0.4%), and the EU (0.1%).
Total export prices rose 0.2% in March as agricultural export prices climbed 0.9%, their largest increase since June 2013. Export prices excluding agriculture were up 0.2%.
Export prices rose 3.6% from a year earlier and were up 3.3% excluding agricultural commodities.
