Reflecting a steep drop in fuel prices, the Labor Department released a report on Wednesday showing an unexpected decline in U.S. import prices in the month of March.
The Labor Department said import prices dipped by 0.2 percent in March after climbing by a revised 0.4 percent in February.
The decrease came as a surprise to economists, who had expected import prices to inch up by 0.1 percent compared to the 0.2 percent increase originally reported for the previous month.
The unexpected drop in import prices primarily reflected a sharp decline in prices for fuel imports, which plunged by 3.8 percent in March after rising by 0.7 percent in February.
A 3.6 percent decrease in petroleum prices and an 11.0 percent decline in natural gas prices contributed to the overall fall in fuel prices.
On the other hand, prices for non-fuel prices edged up by 0.2 percent in March following a 0.4 percent increase in the previous month.
The increase was led by higher prices for non-fuel industrial supplies and materials and capital goods, which more than offset falling prices for consumer goods and foods, feeds, and beverages.
The report also said export prices rose by 0.2 percent in March following a 0.3 percent increase in February. Export prices had been expected to tick up by 0.1 percent.
Prices for agricultural exports climbed by 0.9 percent, while prices for non-agricultural exports crept up by 0.2 percent.
The Labor Department said import prices in March were up by 4.2 percent compared to the same month a year ago. Export prices were up by 3.6 percent year-over-year.
by RTT Staff Writer
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