–Excluding Fuels, Import Prices Were Flat on Mixed Components
By Kevin Kastner
WASHINGTON (MaceNews) – U.S. import prices fell by 2.3% in March, primarily on a 26.8% plunge in fuel prices. Outside of the fuel price drop, import prices were flat, with mixed components.
Analysts had expected overall import prices to fall by 3.1% after last week’s inflation reports confirmed that energy prices dropped sharply in the month. Petroleum prices fell by 27.4%, while crude prices fell 34.4%.
Import prices declined for consumer goods and foods and feeds, but rose for nonfuel industrial supplies, autos, and capital goods.
The COVID-19 pandemic closed the US boarders to products from a number of countries, so lower prices would be expected to follow until U.S. demand for and access to these products pick up.
BLS said that survey response rates were lower than normal in March but said it could not be directly attributable to COVID-19. When survey rates are lower, it’s possible that large revisions could be seen next month.
Overall import prices now stand 4.1% below their year-ago level, a significant slowdown from the 1.3% year/year decline in February. Prices excluding fuels were down 0.5% year/year, up slightly from the 0.7% decline in the previous month.
Prices of imports from China rose 0.1% even as the U.S. restricted trade to mitigate the impact of COVID-19. Prices from Canada, Mexico, the European Union and the UK all declined, while prices from Japan were flat.
Reported at the same time, export prices fell by 1.6% in March, and were still down 1.5% when a 1.4% decline in agricultural export prices is excluded.
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Contact this reporter: kevin@macenews.com