U.S. import prices declined 0.3 percent in August following increases of 0.1 percent in July and June, signaling easing inflation pressures, according to the U.S. Bureau of Labor Statistics.

Lower fuel and nonfuel prices contributed to the August decrease. Prices for U.S. exports fell 0.7 percent in August, after advancing 0.5 percent the previous month.

The price index for U.S. imports fell 0.3 percent in August, after ticking up 0.1 percent from April to July. The August decline was the largest monthly drop since the index decreased 0.7 percent in December 2023. In spite of the August decline, U.S. import prices increased 0.8 percent over the past year. U.S. import prices last fell on a 12-month basis in February 2024. (See table 1.)

Import fuel prices decreased 3.0 percent in August, after increasing 1.1 percent the previous month. The August drop was the largest 1-month decline since the index fell 8.0 percent in December 2023. Lower prices for petroleum and natural gas in August each contributed to the drop in import fuel prices. 

Prices for nonfuel imports edged down 0.1 percent in August, after increasing 0.1 percent in July and 0.2 percent in June. Lower prices in August for nonfuel industrial supplies and materials; consumer goods; and foods, feeds, and beverages more than offset higher capital goods prices. 

Despite the August drop, nonfuel import prices advanced 1.3 percent over the past 12 months, and last declined on an over-the-year basis in February 2024. 

The price index for foods, feeds, and beverages fell 0.1 percent in August following a 1.5-percent advance the previous month. Lower prices for feedstuff and foodgrains contributed to the decrease in foods, feeds, and beverages prices. 

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices decreased 0.4 percent in August, after edging down 0.1 percent in July. Lower prices in August for unfinished metals and agricultural products used for industrial supplies and materials drove the overall decrease. 

Prices for the major finished goods import categories were mixed in August. Capital goods prices ticked up 0.1 percent, after being unchanged in July. Higher prices for industrial and service machinery and semiconductors led the August advance. In contrast, prices for consumer goods edged down 0.1 percent in August, after declining 0.2 percent in each of the previous 2 months. The August decrease was led by lower prices for gem diamonds and for toys, shooting, and sporting goods. The price index for automotive vehicles was unchanged in August following a 0.4-percent increase in July.