The U.S. Bureau of Labor Statistics reported that import prices fell 0.4 percent in July, following a 0.3 percent decline in June. Lower fuel import costs outweighed higher nonfuel import prices. Export prices decreased 1.3 percent in July after a 0.7 percent drop the previous month.

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According to the U.S. Bureau of Labor Statistics, the July decline in import prices was the largest monthly drop since May 2025. Despite the monthly decrease, import prices rose 5.9 percent from July 2025 to July 2026. Fuel import prices fell 7.2 percent in July, the largest monthly decline since September 2024, with petroleum and petroleum products down 7.5 percent while natural gas prices advanced 5.3 percent.

Over the past year, fuel import prices increased 25.2 percent. Nonfuel import prices rose 0.4 percent in July, driven by higher prices for capital goods, foods, feeds, and beverages, and automotive vehicles, parts, and engines. From July 2025 to July 2026, nonfuel import prices increased 4.5 percent, the largest over-the-year advance since June 2022. Import prices for foods, feeds, and beverages advanced 0.9 percent in July, while nonfuel industrial supplies and materials declined 0.5 percent. Capital goods import prices increased 0.9 percent, automotive vehicles, parts, and engines rose 0.2 percent, and consumer goods excluding automotives were unchanged.

Export prices decreased 1.3 percent in July, with nonagricultural exports down 1.5 percent while agricultural exports rose 1.0 percent. Agricultural export prices have not recorded a monthly decline since December 2025. Over the past year, export prices increased 8.2 percent. Nonagricultural industrial supplies and materials prices fell 4.1 percent in July, driven by lower fuel, nonferrous metals, and chemicals prices. Capital goods export prices rose 0.5 percent, consumer goods excluding automotives increased 0.2 percent, and automotive vehicles, parts, and engines advanced 0.7 percent, the largest monthly gain since April 2025.

Import prices from China advanced 0.8 percent in July, the largest monthly increase since July 2008, and rose 2.7 percent over the past year. Import prices from Japan increased 0.6 percent, while those from the European Union decreased 0.2 percent, Mexico fell 0.3 percent, and Canada dropped 2.1 percent, the first monthly decline since September 2025. Export prices to China decreased 0.5 percent, to Japan increased 0.2 percent, to the European Union fell 1.9 percent, to Mexico rose 0.3 percent, and to Canada advanced 2.2 percent, the largest monthly gain since March 2022.

The U.S. terms of trade index with China decreased 1.3 percent in July, with Japan declined 0.3 percent, with the European Union fell 1.6 percent, with Canada increased 4.3 percent, and with Mexico rose 0.6 percent. Import air passenger fares decreased 11.0 percent in July, while export air passenger fares ticked up 0.1 percent. Import air freight prices fell 2.2 percent, and export air freight prices decreased 1.5 percent.

Source: IndexBox Market Intelligence Platform