US import prices in February marked their biggest decline in the last six months amid a fall in oil prices.

A number of economists have said that this indicator could decline further due to the coronavirus pandemic and the price war in oil markets between Saudi Arabia and Russia.

The Labor Ministry announced earlier today that import prices had fallen by 0.5% last month after a revised increase of 0.1% in January. The economists predicted that import prices will fall by 0.8% in February. In the 12 months to February, these prices fell by 1.2%, after rising by 0.3% YoY in January.

Deflation in import prices and the coronavirus are expected to lower inflation in the coming months. The pandemic has succeeded in disrupting supply chains, while China, the main source of resources used in many US factories, is attempting to bring its manufacturing activity back to normal.

Although the resulting shortfall is likely to increase the prices of some goods, travel restrictions and social distance limit the demand for services such as travel, hotels, entertainment, and public catering. The impact of the coronavirus is expected to be reflected in economic data for March.

In February, prices of imported fuels and oils fell by 7.7%, after falling by 0.6% in January. Oil prices fell by 7.6% after remaining unchanged in January.

Imported food prices rose 1.5% last month. Excluding fuels and food, imports increased by 0.2% last month. The so-called basic import prices rose by 0.1% in January. Basic import prices for February fall by 0.8% YoY.

The price of goods imported from China decreased by 0.2% in February, marking its largest decline since January 2019.

The report also showed that export prices fell by 1.1% in February, the largest contraction since December 2015, after rising 0.6% in January. Export prices decreased by 1.3% YoY in February, after rising by 0.4% in January.