:max_bytes(150000):strip_icc()/GettyImages-2156679647-7d173fb269ee457aa801d898d8ba4f54.jpg "How Unchanged Import Prices Could Be Good For Your Wallet")
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Key Takeaways
- Import prices were unchanged in June after declining for the first time all year in the prior month.
- The steady import prices could help consumers by working to tame inflation.
- Export prices fell, which could be a drag on economic growth.
Import prices were unchanged in June which could be a good sign for U.S. consumers.
The flat month comes after a 0.2% decline in May, which was the first decline in import prices all year, according to a report released today from the Bureau of Labor Statistics. Economists expected import prices to fall further in June, according to a survey from the Wall Street Journal and Dow Jones Newswires.
However, the static import prices are still good news for consumers who often end up paying higher prices for more expensive imports.
“Lower import costs, partly due to a strong U.S. dollar boosted by high-yield investments, are benefiting the U.S,” wrote Kyra Kendrick, economist at Moody’s Analytics.
“This strength lowers import prices and affects U.S. export pricing, leading to declining terms of trade,” Kendrick said. “While this may slow national income growth, it also encourages domestic productivity investments and cost-cutting, helping to contain inflation pressures at home.”
Export prices did indeed fall, moving lower by 0.5%, but it was a slower decline than in the previous month.