U.S. import prices fell more than expected in March, leading to the biggest year-on-year decline since mid-2020, further evidence that inflation pressures were subsiding.

Import prices dropped 0.6% last month after slipping 0.2% in February, the Labor Department said on Friday.

Economists polled by Reuters had forecast import prices, which exclude tariffs, falling 0.1%. In the 12 months through March, import prices decreased 4.6%.

That was the largest year-on-year drop since May 2020 and followed a 1.1% decline in February. It offered more hope in the Federal Reserve’s fight against inflation. The government reported this week that consumer prices barely rose in March, while producer prices fell by the most in nearly three years.

Imported fuel prices dropped 2.9% after plunging 5.7% in February. Petroleum prices decreased 1.2%, while natural gas prices plummeted 31.3%. Petroleum prices are set to rebound after Saudi Arabia and other OPEC+ oil producers early this month announced further oil output cuts.

The cost of imported food fell 0.5%. Excluding fuel and food, import prices dropped 0.4%. These so-called core import prices gained 0.3% in February.

Prices for imported capital goods dipped 0.1% in March. The cost of consumer goods excluding motor vehicles fell 0.3%.

The report also showed export prices fell 0.3% in March after rising 0.4% in February. Prices for agricultural exports decreased 1.5% as lower prices for corn, soybeans, wheat and fruit offset higher meat prices.

Nonagricultural export prices fell 0.2%.

Export prices declined 4.8% year-on-year in March after falling 0.8% in February.