US import prices post third straight monthly gain in March

US 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 (Apr 12). 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.

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 US 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.

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US producer prices rise 2.1% from a year ago, most in 11 months

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Imported fuel prices increased 4.7 per cent in March after rising 1.3 per cent in February. 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.

Prices for imported capital goods dropped 0.3 per cent last month. The cost of motor vehicles, parts and engines rose 0.2 per cent. Imported consumer goods prices excluding automotives fell 0.3 per cent. REUTERS