Aug. Import Prices Jump 0.7%; Export Prices Rise 0.9%

WASHINGTON — U.S. prices for imported goods rose 0.7% in August, ending a string of declines, but the increase was entirely attributable to a surge in imported energy prices, according to data released by the Labor Department Wednesday.

Total fuel import prices, which include petroleum as well as natural gas, rose 4.1% in the month after falling in each of the previous four months.

Petroleum prices were also up 4.1%, while natural gas import prices were up 6.8%, continuing their upward trend despite a large U.S. domestic supply. Natural gas prices were still down 33.2% from a year ago.

Outside of the energy component, however, import prices declined virtually across the board. Non-fuel industrial supplies fell 0.4%, while capital goods prices fell 0.1%, food prices were down 0.9%, and consumer goods excluding autos price fell 0.3%. Prices of imported automobiles were flat.

Total import prices excluding both food and fuels were down 0.2% in the month after a 0.4% decline in July.

Despite the August rebound, total import prices were down 2.2% year/year in August, due to a 7.4% year/year decline in the price of fuels. Excluding fuels, import prices were down 0.5% from a year ago.

Total export prices rose 0.9% in August, led by agricultural products, which jumped 5.1% in the month and were up 7.7% from a year earlier.

Export prices for non-agricultural products were up 0.4% in August on rising industrial supply prices, which were offset by declines in the prices of capital goods and autos.

Total export prices were down 0.9% year/year, while non-agricultural export prices were down 1.9% over the last 12 months.

The country data were mixed. The price of imports from both China and Japan were flat. The price of imports from the EU fell 0.4%, while closer to home, the price of imports from Canada were up 1.6% and the price of imports from Mexico were up 0.1%.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

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