The Labor Department reported on Wednesday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, went up 1.1 percent m-o-m in May, following a revised 0.8 percent m-o-m gain in April (originally a 0.7 percent m-o-m advance). Prices for U.S. imports have not recorded a decline since October 2020. Economists had expected prices to grow 0.8 percent m-o-m last month.

According to the report, the May gain was driven by higher prices for both fuel (+4.0 percent m-o-m) and nonfuel (+0.9 percent m-o-m) imports.

Over the 12-month period ended in May, import prices climbed 11.3 percent, with higher fuel (+109.6 percent) and nonfuel (+6.0 percent; the largest 12-month gain since September 2008) prices contributing to the jump. This was the largest over-the-year increase since the year ended September 2011.

Meanwhile, the price index for U.S. exports rose 2.2 percent m-o-m in May, following a revised 1.1 percent m-o-m increase in the previous month (originally a 0.8 percent m-o-m growth). U.S. export prices have not recorded a monthly decrease since April 2020. Economists had forecast export prices to rise 0.8 percent m-o-m in May.

The May rise was driven by higher prices for both agricultural exports (+6.1 percent m-o-m; the largest one-month advance since November 2010) and nonagricultural exports (+1.7 percent m-o-m).

Over the past 12 months, the price index for exports surged 17.4 percent, reflecting surges in prices of both agricultural exports (+33.6 percent; the largest over-the-year rise since April 2011) and nonagricultural exports (+15.7 percent; the largest over-the-year advance since the index was first published in March

1985). This represented the largest over-the-year gain since the index was first published in September 1983.