The Labor Department reported on Tuesday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, was fell 2.3 percent m-o-m in March, following a revised 0.7 percent m-o-m decrease in February (originally a 0.5 percent m-o-m drop). That was the largest monthly drop since January 2015. Economists had expected prices to decline 3.2 percent m-o-m last month.

According to the report, the March drop was driven by lower fuel prices (-26.8 percent m-o-m), while prices of nonfuel imports remained unchanged m-o-m.

Over the 12-month period ended in March, import prices tumbled 4.1 percent, driven by declines in both fuel (-36.2 percent) and nonfuel (-0.5 percent) prices. The decrease was the largest over-the-year drop since the 12 months ended June 2016.

Meanwhile, the price index for U.S. exports plunged 1.6 percent m-o-m in March, following an unrevised 1.1 percent m-o-m fall in the previous month. That was the largest monthly drop in export prices since the January 2015.

Falling prices for both agricultural (-1.4 percent m-o-m) and nonagricultural (-1.5 percent m-o-m) exports contributed to the March plunge.

Over the past 12 months, the price index for exports declined 3.6 percent, reflecting drops in prices of both nonagricultural (-3.7percent) and agricultural (-2.2 percent) exports. That was the largest 12-month decline since the 12 months ended May 2016.