The Labor Department said on Thursday that import prices unexpectedly rose in July by 0.1% after an upwardly revised 0.6% increase in June. Economists polled by Reuters had forecast import prices falling 0.3% in July after a previously reported 0.2% gain in June. In the 12 months through July, import prices fell 3.7%, the smallest decrease since November 2014, after declining 4.7% in June.

Even though a drop in petroleum prices was offset by increases in the price of other goods, data indicate underlying inflation in the coming months will remain weak. Export prices also increased 0.2% in July after rising 0.8% in June, though they are down 3.0% from a year ago.