Import prices for the month of July in the stateside finally recovered from its two straight month of decline. It was somehow supported by the high prices of food and fuel products. However the imported inflation was unchanged.
Import prices surged as high as 0.21 percent on July following its decline by 0.2 percent last June, according to the US Bureau of Labor Statistics on August 15. The increase for July was highly forecasted by economist surveyed by Wall Street Journal which also left a 1.5 percent increase year-on-year. The 12-month increase in imports has been sluggish ever since it touched its best level in five years last February at 1.5 percent.
Regardless of petroleum, the released report still suggested a weak inflation as import prices remained stable following a 0.1 percent rise on the said month. However it advanced about 0.9 percent year-on-year through the prior month. The price of petroleum imports rose more than 0.7 percent for last month following a decrease last June by 2.9 percent.
Imported food prices advanced by 0.6 percent and the costs of imported capital good edged higher by 0.1 percent. Prices of imported motor vehicles, however, dropped more than 0.2 percent for two straight months.
The July report also suggested that prices of exports recouped about 0.4 percent on the month. This is considered its biggest gain since December 2016 following its decline last June by 0.2 percent. Prices of exports have a 12-month advance of 0.8 percent following a 0.6 percent rise through June.
Analysts are forecasting price pressures to begin creeping up on the decline of the U.S. dollar against its major opposing currencies more than 6.6 percent, given that a stronger dollar may reduce underlying imported inflation.