WASHINGTON — Import prices fell 0.6% in May, the largest decrease since last July but a smaller drop than economists estimated, the Labor Department reported today.
Import prices excluding petroleum increased 0.5% with gains in capital goods and nonfuel industrial supplies prices.
Petroleum prices sank 5.0%, the largest drop since a 25% plunge in December 2008. Total fuel imports fell 4.9% for the month, also the largest decrease since December 2008.
Economists expected import prices to decrease 1.3%, according to the median estimate from Thomson Reuters. Import prices for April were revised higher to a 1.1% increase from the 0.9% rise reported last month. Import prices last declined in February.
The capital goods index for import prices increased 0.2% in May, the largest increase since July 2008. The index also increased in April following a string of 12 monthly declines.
The nonfuel industrial supplies and materials index increased 1.9% following a 3.1% gain in April. Higher precious metal prices for iron and steel mill products, plus nickel, aluminum and copper pushed the index higher. The index has not declined since last July.
Import prices rose 8.6% for the year ending in May compared to a 17.3% decrease for the May 2008 to 2009 period.
Export prices increased 0.7% as coal prices increased.
