The Labor Department reported on Friday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, fell 0.5 percent m-o-m in February, following a revised 0.1 percent m-o-m gain in January (originally flat m-o-m). Economists had expected prices to drop 0.8 percent m-o-m last month.

According to the report, in February, falling import fuel prices (-7.7 percent m-o-m, the largest monthly decline since June 2019) more than offset higher prices for nonfuel imports (+0.3 percent m-o-m).

Over the 12-month period ended in February, import prices decreased 1.2 percent, driven by declines in both fuel (-5.8 percent) and nonfuel (-0.7 percent) prices.

Meanwhile, the price index for U.S. exports tumbled 1.1 percent m-o-m in February, following a revised 0.6 percent m-o-m gain in the previous month (originally a 0.7 percent m-o-m climb). That was the largest monthly drop since December 2015.

Falling prices for both agricultural (-2.7 percent m-o-m) and nonagricultural (-1.0 percent m-o-m) exports contributed to the February plunge.

Over the past 12 months, the price index for exports declined 1.3 percent, as a drop in prices for nonagricultural exports (-1.6 percent) more than offset an advance in prices for agricultural (+0.2 percent).