WASHINGTON—As escalating trade disputes threaten to drive up the cost of imported goods for U.S. consumers and businesses, economists say a stronger dollar may be helping to offset some of the pain.
Import prices excluding volatile fuel items fell 0.3% in July after posting a similar drop in June, the Labor Department said Tuesday, reversing five straight months of increases earlier this year. The price declines came after the dollar rallied as much as 7% between mid-February and late May against a basket of currencies, bolstering...