U.S. import prices fell in March as rising petroleum costs were offset by declining prices for other goods, a sign of muted inflation that supports the view the Federal Reserve will probably not raise interest rates in June.
The U.S. Labor Department said on Friday import prices dropped 0.3% last month after a downwardly revised 0.2% gain in February.
Economists polled by Reuters had forecast import prices slipping 0.3% after a previously reported 0.4% increase in February, when prices advanced for the first time after declining for seven straight months.
In the 12 months through March, prices plunged 10.5%, the largest drop since September 2009.
Lower crude oil prices and a buoyant dollar have dampened price pressures, leaving inflation running well below the Fed's 2% target.
Officials at the central bank, some of whom have shown a willingness to consider a rate hike at the June policy-setting meeting, view the low inflation environment as transitory.
