According to the data released by the Labor Department, prices of imported goods fell in May as inflation rate continues to go down.
According to the report, prices of foreign goods went down by 0.3 percent in May from previous months. However, you should note that the import prices aren’t adjusted for seasonality and exclude taxes and tariffs. Despite that, the latest drop in prices reflects the impact of stronger U.S. dollar as businesses outside of the country to keep lower prices in an attempt to remain competitive in the U.S. markets.
At the moment, Federal Reserve officials are set to consider the future policies later next week. While the inflation rate over last couple of years has been lower than the expected rate, officials expect it to increase in absence of strategy going forward.
In addition to the lower prices in import, data released on Thursday also revealed that prices for U.S. exports went down by 0.2% in May and down by 0.7% from the previous year.