U.S. import prices increase more than expected in
January
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[February 16, 2018]
WASHINGTON, Feb 16 (Reuters) - U.S. import prices rose more than
expected in January as the cost of imported petroleum and a range of
other goods increased, which could boost inflation in the coming months.
The Labor Department said on Friday that import prices jumped 1.0
percent last month after an upwardly revised 0.2 percent rise in
December. Economists polled by Reuters had forecast import prices
increasing 0.6 percent in January after a previously reported 0.1
percent gain in December.
In the 12 months through January, import prices increased 3.6 percent,
the largest advance since April 2017, quickening from a 3.2 percent rise
in December.
Data this week showed an acceleration in consumer and producer prices in
January. The increases have bolstered expectations that inflation will
rise this year and potentially breach the Federal Reserve's 2 percent
target.
Inflation is expected to be driven by a tightening labor market, a weak
dollar and fiscal stimulus in the form of a $1.5 trillion tax cut
package and increased government spending.
Higher inflation could prompt the Fed to be a bit more aggressive in
raising interest rates this year than is currently anticipated. The U.S.
central bank has forecast three rate increases for this year, with the
first hike expected in March.
Last month, prices for imported petroleum increased 4.3 percent after
rising 2.3 percent in December. Import prices excluding petroleum gained
0.5 percent, the largest increase since July 2016, after being unchanged
in the prior month.
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Gasoline drips off a nozzle during refueling at a gas station in
Altadena, California March 24, 2012. REUTERS/Mario Anzuoni
The rise in imported prices excluding petroleum likely reflects the dollar's
depreciation against the currencies of the United States' main trading partners.
Import prices excluding petroleum increased 1.9 percent in the 12 months through
January. Imported capital goods prices edged up 0.1 percent last month, while
the cost of imported food surged 0.8 percent.
Prices for imported motor vehicles jumped 0.5 percent. Prices of consumer goods
excluding automobiles were unchanged.
The report also showed export prices rose 0.8 percent in January after ticking
up 0.1 percent in December. Export prices increased 3.4 percent on a
year-on-year basis, the biggest gain since last March, after rising 2.8 percent
in December.
((Reporting by Lucia Mutikani; Editing by Paul Simao))
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