US import prices increase solidly in May

US import prices increased solidly in May amid higher prices for petroleum products, but there were tentative signs of some moderation in underlying imported inflation pressures.

Import prices rose 0.6 per cent last month after gaining 0.4 per cent in April, the Labor Department said on Wednesday.

In the 12 months through May, import prices increased 11.7 per cent after advancing 12.5 per cent in April. Economists polled by Reuters had forecast import prices, which exclude tariffs, increasing 1.1 per cent.

Globally, inflation has surged since Russia invaded Ukraine in February, and the war has boosted oil and grain prices.

Government data this week showed monthly consumer and producer prices accelerating in May, fuelled by energy costs. The Federal Reserve is expected to raise its policy interest rate later on Wednesday for a third time this year, with an increase of 3/4 of a percentage point seen as likely, and possibly signals for more large hikes to come.

Imported fuel prices shot up 7.5 per cent last month after climbing 0.5 per cent in April. Petroleum prices rebounded 6.7 per cent, while the cost of imported food fell 0.2 per cent.

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Excluding fuel and food, import prices dropped 0.3 per cent. These so-called core import prices increased 0.4 per cent in April. They rose 5.5 per cent on a year-on-year basis in May.

The report also showed export prices rose 2.8 per cent in May after advancing 0.8 per cent in April.

Prices for agricultural exports gained 2.1 per cent. Nonagricultural export prices advanced 2.9 per cent. Export prices jumped 18.9 per cent year-on-year in May, the largest gain since September 1984. That followed a an 18.3 per cent increase in April. REUTERS