U.S. import prices decreased by 0.4 percent in May, following a 0.9 percent increase in April, according to the latest report from the U.S. Bureau of Labor Statistics. This decline was driven by lower prices for both fuel and nonfuel imports. Conversely, U.S. export prices also fell in May, down by 0.6 percent, after a 0.6 percent rise in April.
Import prices for fuel experienced a notable decrease of 2.0 percent in May, marking the first decline since December 2023. Lower prices for both petroleum and natural gas contributed to this drop. Import petroleum prices specifically fell by 1.7 percent in May, following a substantial increase of 4.6 percent in April. Import natural gas prices also saw a significant decline of 19.5 percent in May.
Nonfuel import prices decreased by 0.3 percent in May, the first monthly drop since October 2023. Prices for foods, feeds, and beverages; nonfuel industrial supplies and materials; consumer goods; capital goods; and automotive vehicles all contributed to this decline. Despite the monthly decrease, nonfuel import prices increased by 0.5 percent over the past year.
Prices for foods, feeds, and beverages fell by 1.6 percent in May, driven by significant declines in vegetable and fruit prices. Nonfuel industrial supplies and materials also saw a decrease of 0.4 percent, influenced by a substantial drop in other agricultural product prices. Finished goods import prices declined across major categories, with consumer goods down by 0.2 percent, capital goods by 0.1 percent, and automotive vehicles by 0.1 percent in May.
On the export front, agricultural export prices increased by 0.5 percent in May, buoyed by higher prices for wheat, fruit, corn, and meat. However, nonagricultural export prices decreased by 0.8 percent, primarily due to lower prices for nonagricultural industrial supplies and materials. Despite this monthly decline, nonagricultural export prices rose by 1.5 percent over the past year.
Nonagricultural industrial supplies and materials export prices fell by 2.0 percent in May, led by a decrease in export fuel prices. However, prices for export fuel increased by 3.1 percent over the past year. Among finished goods export categories, capital goods prices rose by 0.1 percent in May, driven by an increase in semiconductor prices. Consumer goods prices also saw a slight increase of 0.1 percent, while automotive vehicle prices remained unchanged.
Source: BLS Press Release
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