The Labor Department reported on Friday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, fell 0.5 percent m-o-m in August, following a revised 0.1 percent m-o-m gain in July (originally a 0.2 percent m-o-m advance). Economists had expected prices to decline 0.4 percent m-o-m last month.

According to the report, the August decline was driven by a drop in fuel prices (-4.3 percent m-o-m), while prices for nonfuel goods were flat m-o-m.

Over the 12-month period ended in August, import prices dropped 2.0 percent, weighed down by declines in both fuel (-8.7 percent) and nonfuel (-1.0 percent) prices.

Meanwhile, the price index for U.S. exports dropped 0.6 percent m-o-m in August, following an unrevised 0.2 percent m-o-m increase in the previous month.

Lower agricultural (-2.5 percent m-o-m) and nonagricultural (-0.4 percent m-o-m) prices both contributed to the August fall.

Over the past 12 months, the price index for exports dropped 1.4 percent, weighed down by lower prices for non-agricultural exports (-1.6 percent).