US import prices resume downward trend in March

US 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 Labor Department said on Friday import prices dropped 0.3 percent last month after a downwardly revised 0.2 percent gain in February.

Economists polled by Reuters had forecast import prices slipping 0.3 percent after a previously reported 0.4 percent increase in February, when prices advanced after declining for seven straight months.

In the 12 months through March, prices plunged 10.5 percent, the largest drop since September 2009.

US government debt prices were largely unchanged after the data, while the dollar gained against a basket of currencies. US stock index futures were mixed.