The Labor Department reported on Tuesday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, fell 0.9 percent m-o-m in June, following a revised flat m-o-m performance in May (originally a 0.3 percent m-o-m decline). It was the first monthly drop since December 2018. Economists had expected prices to decrease 0.7 percent m-o-m last month.

According to the report, both lower fuel (-6.5 percent m-o-m) and nonfuel (-0.3 percent m-o-m) prices contributed to the June decline in import prices.

Over the 12-month period ended in June, import prices dropped 2.0 percent, weighed down by declines in both fuel and nonfuel prices. That was the largest over-the-year drop since the index fell 2.2 percent from August 2015 to August 2016.

At the same time, the price index for U.S. exports declined 0.7 percent m-o-m in June, following an unrevised 0.2 percent m-o-m drop in the previous month. That represented the largest monthly drop for the index since November 2018.

Lower prices for prices for nonagricultural exports (-1.1 percent m-o-m) more than offset higher prices for agricultural exports (+2.7 percent m-o-m) exports contributed to the May decline.

Over the past 12 months, the price index for exports dropped 1.6 percent, the largest 12-month decline since the index decreased 2.4 percent from August 2015 to August 2016.