Prices for US imports fall 0.4% in May, 0.6%-drop for export prices

Lower fuel and non-fuel import prices contributed to the overall decline.

US export prices fell by 0.6 per cent in May, after increasing 0.6 per cent in April.

The May decrease in both imports and exports was the first monthly drop since the indices fell by 0.7 per cent in December 2023.

Prices for US imports rose by 1.1 per cent for the year ended in May, matching the over-the-year increase in April.

The May and April 12-month advances are the largest over-the-year increases since December 2022, a BLS release noted.

The price index for non-fuel imports decreased by 0.3 per cent in May after increasing by 0.7 per cent the previous month. The May decline was the first one-month drop since October 2023.

Prices for each of the major finished goods import categories decreased in May. The price index for consumer goods declined by 0.2 per cent following a 0.1-per cent decrease the previous month.

Prices for imported capital goods edged down 0.1 per cent in May, after ticking up 0.1 per cent the previous month.

Despite the drop in May, prices for US exports rose by 0.6 per cent from May 2023 to May 2024, the first 12-month advance since January 2023.

The price index for non-agricultural exports decreased by 0.8 per cent in May, the first monthly decline since December 2023. Lower prices for non-agricultural industrial supplies and materials in May more than offset higher prices for capital goods, consumer goods and non-agricultural foods.

In spite of the May drop, non-agricultural export prices rose by 1.5 per cent over the past year, the largest 12-month increase since January 2023.      

Prices for the major finished goods export categories mostly increased in May. Capital goods prices ticked up by 0.1 per cent following a 0.5-per cent advance in April.

ALCHEMPro News Desk (DS)