Energy price drop weighs on import prices in August

Import and export prices both fell last month, on the back of sharp declines in the cost of fuel and agricultural goods.

According to the Department of Labor, the US import price index dropped at a 0.5% month-on-month pace in August, matching the consensus forecast.

Also on the back of downwards revisions to estimates for the previous month, import prices were 2.0% lower when compared with the same month one year earlier.

Non-fuel import prices were unchanged in comparison to the previous month, but those of fuel imports fell by 4.3%.

On the export side of the equation, a 2.5% drop in the price of agricultural goods accounted for the lion's share of the 0.6% decline seen in the price of exports overall.

Non-agricultural export prices were also lower when compared to July, but only by four tenths of a percentage point.

Versus a year ago, total export prices decreased by 1.4%.