A report released by the Labor Department on Thursday showed U.S. import prices increased in line with economist estimates in the month of June.
The Labor Department said import prices advanced by 1.0 percent in June after surging by an upwardly revised 1.4 percent in May.
Economists had expected import prices to climb by 1.0 percent compared to the 1.1 percent jump originally reported for the previous month.
The increase in imports prices was partly due to a continued surge in prices for fuel imports, which spiked by 4.7 percent in June after soaring by 5.5 percent in May.
Prices for non-fuel imports rose by 0.7 percent in June following a 0.9 percent advance in May, reflecting higher prices for non-fuel industrial supplies and materials; foods, feeds, and beverages; consumer goods; and capital goods.
The annual rate of growth in import prices slowed modestly to 11.2 percent in June from 11.6 percent in May, which reflected the largest year-over-year increase since September of 2011.
“Looking ahead, we expect import prices to cool as supply-demand imbalances gradually take the pressure off rising costs,” said Mahir Rasheed, U.S. Economist at Oxford Economics.
He added, “However, we expect warmer inflation will persist through 2022, while greater U.S. demand relative to its trading partners will keep import growth firmly ahead of exports.”
Meanwhile, the report said export prices shot up by 1.2 percent in June after spiking by 2.2 percent in May. Export prices were expected to surge by 1.3 percent.
Prices for agricultural exports jumped by 1.5 percent in June after soaring by 6.1 percent in May, while prices for non-agricultural exports increased by 1.1 percent following a 1.8 percent advance in the previous month.
Compared to the same month a year ago, export prices in June were up by 16.8 percent, reflecting a slowdown from the 17.5 percent spike in May.
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