–Import Prices Ex. Fuels Down 0.3%, Ex. Petroleum Down 0.3%
–Export Prices -1.7%, Agriculture Prices -4.0%, Non-Ag -1.4%
–Total Import Price Drop Largest Since December 2008

By Kevin Kastner and Ian McKendry

WASHINGTON (MNI) – U.S. prices for imported goods plunged 2.7% in
June, as the price of both fuels and non-fuel items declined in the
month, the Labor Department reported Thursday.

The drop in total import prices was the largest since a 4.6%
decline in December 2008.

Total fuel import prices, which include petroleum as well as
natural gas, fell 10.1% in the month. Petroleum prices were down 10.5%,
but natural gas import prices rose 7.4%.

Import prices saw widespread declines among the nonfuel categories,
with a 1.3% drop in non-fuel industrial supplies and a 1.0% decline in
food import prices.

In addition, import prices of capital goods fell 0.2%, prices of
autos and related goods fell 0.1%, and consumer goods prices fell 0.1%.

Total import prices excluding both food and fuels were down 0.3% in
the month after a 0.1% decline in May.

Total import prices were down 2.6% year/year in June. Non-petroleum
import prices were down 0.2% year/year, but prices
excluding fuels were up 0.6% year/year. Excluding both foods and fuels,
import prices posted a 0.8% year/year increase.

Within the energy category, fuel prices were down 12.0% year/year,
while petroleum prices were down 10.7% over that period. Import prices
for natural gas plummeted over the last year, down 44.7% despite the
June increase, as domestic supply has remained very high compared to
the comparable period a year earlier.

Total export prices fell 1.7% in June. Agricultural export prices
down 4.0% in the month and were down 6.1% from a year earlier.

Export prices for non-agricultural products were down 0.7% in June
on declines in the prices of every component except a modest 0.2% rise
in the exports of non-auto consumer goods. This included a 3.9% decline
in the export price of industrial supplies, the largest drop for that
category since December 2008.

Total export prices fell 2.1% year/year. Non-agricultural export
prices were down 1.6% over the last 12 months.

The country data were generally lower, though the price of imports
from China was flat, while the price of imports from Japan rose 0.1%.
The price of imports from the EU fell 0.7%, while closer to home, the
price of imports from Canada plunged 2.9% and the price of imports from
Mexico fell 2.2%, both the largest respective declines since November
2008.

** MNI Washington Bureau (202) 371-2121 **

[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]