Import prices in June recovered the prior month's revised decline with a 1.0% increase and about matched Consensus expectations.

Petroleum prices more than recovered May's decline with a 7.6% jump. In early July, Brent crude moved higher to $57.69/bbl. from an average $55.37 in June.

Import prices other than petroleum posted the second consecutive monthly decline and fell 0.4% last month. The decline primarily reflected a 1.7% drop in prices for foods, feeds & beverages.

Prices for nonauto consumer goods fell 0.1% (+1.4% y/y) and capital goods prices were unchanged (0.0% y/y). Excluding computers capital goods prices also were unchanged (2.9% y/y).

During the last ten years there has been a 66% (negative) correlation between the nominal trade-weighted exchange value of the US dollar vs. major currencies and the y/y change in non oil import prices. The correlation is a lower 47% against a broader basket of currencies and a lower 57% against the real value of the dollar.

Export prices were unchanged.