The Labor Department reported on Wednesday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, rose 1.4 percent m-o-m in June, following a revised 0.8 percent m-o-m increase in May (originally a 1.0 percent m-o-m gain). That was the largest one-month gain since March 2012. Economists had expected prices to advance 1.0 percent m-o-m last month.

According to the report, the June surge was driven by higher fuel prices (+21.9 percent m-o-m, the largest rise since the index was first published monthly in September 1992), while nonfuel prices (+0.3 percent m-o-m) increased only slightly.

Over the 12-month period ended in June, import prices fell 3.8 percent, due to declines in both fuel (-36.4 percent) and nonfuel (-0.2 percent) prices.

Meanwhile, the price index for U.S. exports also increased 1.4 percent m-o-m in June, following a revised 0.4 percent m-o-m gain in the previous month (originally a 0.5 percent m-o-m rise). This was the largest one-month advance for the index since March 2011.

Prices for both nonagricultural (+1.4 percent m-o-m, the largest monthly advance since March 2011) and agricultural (+1.4 percent m-o-m, the first monthly increase since January) exports contributed to the June advance.

Over the past 12 months, the price index for exports plunged 4.4 percent, reflecting drops in prices of both agricultural (-4.5 percent) and nonagricultural (-4.4 percent) exports.