Mubasher: The costs of the imported goods into the US declined in August, led by dropping prices of petroleum products and food, according to official data released on Friday.

The price gauge for the US imports dropped by 0.5% last August, after recording a downwardly revised gain of 0.1% in July, the Bureau of Labor Statistics (BLS) said.

Costs of petroleum shipments into the US plunged by 4.8%, while broader fuel import prices fell by 4.3% month-on-month last August.

Over the 12 months ended August, import prices dropped by 2%, after falling by 1.9% in the preceding month.

US export prices dropped by 0.6% last month, having edged up by 0.2% in the prior month.

Friday’s data, released one week ahead of the US Federal Reserve’s policy meeting, indicated that inflation will probably remain subdued, even with the increase of underlying consumer prices last month.

This is likely build the case for the Fed to cut interest rates at its meeting due on 17 and 18 September, after delivering the first rate cut since 2008 last July.

By 1:18 pm GMT, the EUR/USD pair rose by 0.18% to $1.1085.