The Labor Department reported the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, rose 0.6 percent m-o-m in February, following a revised 0.1-percent m-o-m increase in January (originally a 0.5 percent decline). That was the largest monthly advance in import prices since May last year. Economists had expected prices to gain 0.3 percent m-o-m last month. 

According to the report, prices for import fuel rose 4.9 percent in February, after advancing 4.1 percent in January, as prices for both petroleum and natural gas increased. Meanwhile, nonfuel import prices recorded no change in February following a 0.3-percent drop in January, as rising prices for consumer goods and nonfuel industrial supplies and materials offset declining prices for foods, feeds, and beverages and capital goods.

Over the 12-month period ended in February, import prices dropped 1.3 percent, weighed down by declines in both fuel and nonfuel prices.

At the same time, the price index for U.S. exports surged 0.6 percent m-o-m in February, following a revised 0.5 percent m-o-m drop in the previous month (originally a 0.6 percent decrease). 

Both nonagricultural prices (+0.7 percent m-o-m) and agricultural prices (+0.3 percent m-o-m) contributed to the February advance.

Over the past 12 months, the price index for exports rose 0.3 percent, driven by higher nonagricultural prices.