With a steep drop in prices for fuel imports offset by an increase in prices for non-fuel imports, the Labor Department released a report on Tuesday showing U.S. import prices were unchanged in the month of May.
The Labor Department said import prices came in flat in May after inching up by 0.1 percent in April.
Meanwhile, the report said the annual rate of import price growth crept up to 0.2 percent in May from 0.1 percent in April.
The unchanged monthly reading came as prices for fuel imports plunged by 4.0 percent in May after tumbling by 2.6 percent in April, while prices for non-fuel imports rose by 0.3 percent in May after climbing by 0.4 percent in April.
The Labor Department said higher prices for non-fuel industrial supplies and materials, capital goods, consumer goods and automotive vehicles more than offset lower prices for foods, feeds, and beverages.
The report also said export prices slumped by 0.9 percent in May after inching up by 0.1 percent in April. Economists had expected export prices to edge down by 0.1 percent.
With the much bigger than expected monthly decrease, the annual rate of export price growth slowed to 1.7 percent in May from 1.9 percent in April.
The notable pullback by export prices came as prices for non-agricultural exports tumbled by 1.0 percent, more than offsetting a 0.2 percent uptick in prices for agricultural exports.