WASHINGTON, May 10 (Reuters) – U.S. import prices in April
recorded their largest drop in 10 months as energy costs
tumbled, according to a government report on Thursday that also
showed tame underlying inflation pressures from imports.
Overall import prices fell 0.5 percent, the Labor Department
said. March’s data was revised to show a 1.5 percent increase
rather than the previously reported 1.3 percent gain.
Economists polled by Reuters had expected prices to fall 0.2
percent last month. In the 12 months to April, import prices
increased 0.5 percent, the weakest reading since October 2009.
Stripping out petroleum, import prices were flat as weak
capital goods costs offset the largest increase in automobiles
prices in 10 months, indicating that broader inflation pressures
remained benign – in line with the Federal Reserve’s view.
Data on Friday is expected to show that weak energy costs
held down wholesale prices in April for a second month in a row,
according to a Reuters survey.
Outside food and energy, producer prices are expected to
have moderated, with a gain of 0.2 percent forecast after a 0.3
percent increase in March.
Last month, imported petroleum prices fell 1.8 percent, the
largest drop since August, after rising 4.9 percent in March.
That should pull down gasoline prices from their recent
highs and support economic growth, despite signs of cooling in
activity.
Imported food prices ticked up 0.1 percent after increasing
1.8 percent the prior month.
Elsewhere, imported capital goods prices were unchanged
after advancing 0.2 percent in March. Imported motor vehicle
prices rose 0.4 percent after increasing 0.3 percent the
previous month.
The Labor Department report also showed export prices rose
0.4 percent last month, above analysts’ expectations for a 0.2
percent gain. Export prices increased 0.8 percent in March.
(Reporting By Lucia Mutikani; Editing by Neil Stempleman)
