The Labor Department reported on Thursday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, rose 0.7 percent m-o-m in July, following an unrevised 1.4 percent m-o-m gain in June. Economists had expected prices to advance 0.6 percent m-o-m last month.

According to the report, the July advance was driven by higher fuel prices (+6.9 percent m-o-m), while nonfuel prices (+0.2 percent m-o-m) increased only slightly.

Over the 12-month period ended in July, import prices fell 3.3 percent, due to a tumble in fuel prices (-32.8 percent), while nonfuel prices were unchanged (0.0 percent).

Meanwhile, the price index for U.S. exports increased 0.8 percent m-o-m in July, following a revised 1.2 percent m-o-m gain in the previous month (originally a 1.4 percent m-o-m rise).

Prices for both nonagricultural (+0.7 percent m-o-m) and agricultural (+1.5 percent m-o-m) exports contributed to the July increase.

Over the past 12 months, the price index for exports plunged 4.4 percent, reflecting drops in prices of both agricultural (-3.3 percent) and nonagricultural (-4.6 percent) exports.