A report released by the Labor Department on Friday showed U.S. import prices came in flat in the month of January, while export prices unexpectedly showed a notable rebound.
The Labor Department said import prices were unchanged in January after rising by a downwardly revised 0.2 percent in December.
Economists had expected import prices to dip by 0.2 percent compared to the 0.3 percent increase originally reported for the previous month.
Import prices came in unchanged in January as a 2.2 percent nosedive in prices for fuel imports was offset by a 0.2 percent uptick in prices for non-fuel imports.
While natural gas prices showed a substantial pullback, prices for non-fuel industrial supplies and materials and foods, feeds, and beverages increased.
Meanwhile, the report said export prices climbed by 0.7 percent in January after slipping by 0.2 percent in December. Export prices had been expected to edge down by 0.1 percent.
The unexpected rebound in export prices came as prices for agricultural exports surged up by 2.0 percent due to rising prices for vegetables, soybeans, wheat, and corn.
Prices for non-agricultural exports also increased by 0.7 percent amid higher prices for non-agricultural industrial supplies and materials, finished goods, and non-agricultural foods.
Compared to the same month a year ago, import prices in January were up by 0.3 percent, while export prices were up by 0.5 percent.
The material has been provided by InstaForex Company – www.instaforex.com