The Labor Department reported on Thursday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, was fell 2.6 percent m-o-m in April, following a 2.4 percent m-o-m decrease in February (originally a 2.3 percent m-o-m drop). That was the largest monthly drop since January 2015. Economists had expected prices to decline 3.1 percent m-o-m last month.

According to the report, the April drop was driven by lower fuel prices (-31.5 percent m-o-m, the largest one-month drop since the index was first published monthly in September 1992), while prices of nonfuel imports decreased only slightly (-0.5 percent m-o-m).

Over the 12-month period ended in April, import prices tumbled 6.8 percent, due to declines in both fuel (-56.6 percent, the largest 12-month drop since the index was first published in December 1984) and nonfuel (-1.0 percent) prices. The decrease was the largest over-the-year drop since the 12 months ended December 2015.

Meanwhile, the price index for U.S. exports declined 3.3 percent m-o-m in April, following a revised 1.7 percent m-o-m fall in the previous month (originally a 1.6 percent m-o-m drop). That was the largest one-month drop in export prices since the index was first published on a monthly basis in December 1988.

Falling prices for both agricultural (-3.1 percent m-o-m, the largest decline since July 2018) and nonagricultural (-3.3 percent m-o-m, the largest drop since the index was first published on a monthly basis in December 1988) exports contributed to the April fall.

Over the past 12 months, the price index for exports plunged 7.0 percent, reflecting drops in prices of both nonagricultural (-7.3 percent, the largest over-the-year drop since the index was first published in March 1985) and agricultural (-4.1 percent) exports. That was the largest 12-month decline since the 12 months ended September 2015.