The Bureau of Labor Statistics (BLS) reported Thursday import prices fell sharply by 0.3% in May, more than the 0.1% median economic forecast. That’s the largest single month decline in import prices since February 2016, though the price index for U.S. imports increased 2.1% for the 12 months ended in May.
The decline was widespread but largely driven by a 3.7% drop in fuel prices. The last time fuel prices fell by more than 3.7% was when it fell 6.8% in February 2016. The May decrease was primarily the result of a 3.9% decline in petroleum prices, though natural gas prices also fell, by 2.9%.