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US import prices recorded the largest decline in May, due to a large-scale drop in commodity costs. The latest low inflation index reinforces the Fed's rationale for lowering interest rates this year.
The US Department of Labor announced Thursday that import prices fell 0.3% last month, the biggest drop since December.
April data was revised downward to show that import prices rose 0.1% instead of 0.1%.
From 0.2% in the previous report.
Economists polled by Reuters forecast a drop in prices of 0.2% in May. During the 12-month period ending in May, import prices fell 1.5%, following a 0.3% decline in April.
The report was released following data showing that Wednesday, consumer prices remained low in May, which supports
Financial market expectations as the US Federal Reserve lowers interest rates this year.
Calls for monetary easing are motivated by an economic slowdown due to increasing trade tensions between the United States and China. In early May, President Donald Trump imposed an additional $ 200 billion on Chinese products, resulting in retaliation by Beijing.
Trump threatened Monday to charge more tariffs on Chinese imports if no deal was found when he will meet Chinese President Xi Jinping at the G20 summit this month in Japan.
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