The Labor Department reported on Friday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, rose 1.0 percent m-o-m in May, following an unrevised 2.6 percent m-o-m decrease in April. That was the largest one-month gain since February 2019. Economists had expected prices to advance 0.6 percent m-o-m last month.

According to the report, the May surge was driven by higher fuel prices (+20.5 percent m-o-m, the largest rise since the index was first published monthly in September 1992), while nonfuel prices (+0.1 percent m-o-m) increased only marginally.

Over the 12-month period ended in May, import prices fell 6.0 percent, due to declines in both fuel (-49.6 percent) and nonfuel (-0.7 percent) prices.

Meanwhile, the price index for U.S. exports increased 0.5 percent m-o-m in May, following an unrevised 3.3 percent m-o-m fall in the previous month.

Higher nonagricultural prices (+0.6 percent m-o-m) in May more than offset lower prices for agricultural exports (-0.5 percent m-o-m).

Over the past 12 months, the price index for exports plunged 6.0 percent, reflecting drops in prices of both nonagricultural (-6.3 percent) and agricultural (-3.5 percent) exports.