Import prices unexpectedly fell in April, declining o.4 percent. The drop came as food and energy prices pulled back, but prices for core imported goods recorded mild increases. On balance, import prices remain tame.
Import Prices Fall as Food and Energy Pull Back
• After increasing 1.8 percent in the first quarter, prices for imported goods fell 0.4 percent in April. The decline was driven by a 1.7 percent drop in fuel prices as natural gas prices and petroleum prices fell. A partial reversal of last month’s 3.4 percent jump in food prices also led import prices lower.
• Although food prices have moved sharply higher over the past year, total import prices remain down 0.3 percent.
Broader Signs of Mild Import Inflation
• Outside of food and energy, import prices rose 0.1 percent, with prices for nonfuel industrial supplies, capital goods, autos and consumer goods edging up over the month.
• Export prices slipped 1.0 percent in April on a drop in fuel. Outside of energy, export prices saw broad gains, with the autos and consumer goods categories each rising 0.3 percent and prices for exported capital goods ticking up 0.1 percent.
Wells Fargo