U.S. import prices rise despite hike in energy, food costs
WASHINGTON — U.S. import prices increased for a third straight month in March amid rises in the costs of energy products and food, but underlying imported inflation pressures were tame.
Import prices rose 0.4 per cent last month after an unrevised 0.3 per cent gain in February, the Labor Department’s Bureau of Labor Statistics said on Friday. Economists polled by Reuters had expected import prices, which exclude tariffs, to rise 0.3 per cent.
In the 12 months through March, import prices rebounded 0.4 per cent. That was the first year-on-year increase since January 2023, and followed a 0.9 per cent decline in February.
Imported fuel prices increased 4.7 per cent in March after rising 1.3 per cent in February. Petroleum prices surged 6.0 per cent, but natural gas prices tumbled 31.9 per cent. The cost of imported food shot up 1.6 per cent after climbing 0.3 per cent in the prior month.
Excluding fuels and food, import prices were unchanged. These so-called core import prices edged up 0.1 per cent in February. Core import prices fell 0.4 per cent year-on-year in March.
“Inflation pressures may not be raging completely out of control,” said Christopher Rupkey, chief economist at FWDBONDS in New York.
Inflation readings were mixed in March, with consumer prices rising solidly while producer prices increased moderately, government data showed this week.
The firmer-than-expected consumer price inflation data in the wake of a strong employment report in March led financial markets and most economists to push back expectations for a first Federal Reserve interest rate cut to September from June.
The U.S. central bank has kept its policy rate in the 5.25 per cent-5.50 per cent range since July. It has raised its benchmark overnight interest rate by 525 basis points since
March 2022.
Prices for imported capital goods dropped 0.3 per cent last month, potentially pointing to a moderation in business investment. The cost of motor vehicles, parts and engines rose 0.2 per cent. Imported consumer goods prices excluding automotives fell 0.3 per cent.
The cost of imported goods from China dipped 0.1 per cent for the second consecutive month. They dropped 2.6 per cent year-on-year in March. Prices of Japanese imports also fell. But prices of goods imported from Canada and Mexico increased solidly.
The report also showed export prices rose 0.3 per cent in March after advancing 0.7 per cent in February. Agricultural export prices fell 0.7 per cent, pulled down by lower prices for soybeans, corn and wheat in March. Meat prices rose. Nonagricultural goods export prices increased 0.4 per cent.
Export prices fell 1.4 per cent year-on-year in March, the smallest decrease since February 2023, after dropping 2.0 per cent in February.