U.S. import prices increased by the most in more than a year in May, driven by higher costs for petroleum products and food, which could further diminish fears of deflation as the economy battles a recession.
The Labor Department said on Friday import prices rose 1.0% last month, the largest gain since February 2019, after falling 2.6% in April.
In the 12 months through May, import prices decreased 6.0% after dropping 6.8% in April.
The report followed data this week showing consumer prices falling moderately in May and producer prices rebounding. Deflation is a decline in the general price level, which is harmful during a recession as consumers and businesses may delay purchases in anticipation of lower prices.
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