US import prices unchanged in July, vs 0.1% increase expected

The dollar has gained more than 4 percent on a trade-weighted basis so far this year, which could temper the anticipated increases in the prices of some imported goods as a result of trade tensions between the United States and major economies.

Import prices for nonfuel industrial supplies and materials tumbled 1.0 percent in July, the biggest monthly drop since January 2016, after rising 0.2 percent in June. The cost of imported capital goods dipped 0.1 percent after a similar drop in June.

Imported motor vehicle prices were unchanged. The cost of consumer goods excluding automobiles rose 0.3 percent after dropping 0.3 percent in June.

Prices for goods imported from China fell 0.2 percent in July, the first drop since September 2017, after edging up 0.1 percent in the prior month. Prices for Chinese imports rose 0.2 percent in the 12 months through July.

The report also showed export prices fell 0.5 percent in July after rising 0.2 percent in June. Prices for agricultural products fell 5.3 percent last month, weighed down by a 14.1 percent plunge in soybean prices.

Export prices increased 4.3 percent on a year-on-year basis in July after rising 5.3 percent in June.