–Prices For EU Imports See Largest Monthly Decline Since December 2008

By Brai Odion-Esene and Ian Mckendry

WASHINGTON (MNI) – U.S. import prices rose last month 0.3%, after a
0.1% dip in December, as higher prices for both fuel and non-fuel
imports fed the increase in the overall index, the Bureau of Labor
Statistics reported Tuesday.

And given the ongoing sovereign debt troubles in the Eurozone,
which has seen the U.S. dollar strengthen against the common currency,
prices of imports from the European Union dropped by the largest margin
— on a monthly basis — in over three years.

The BLS noted that import prices increased for the second time in
three months, and that prior to the past three months, import prices
“had trended mostly down” between June and October.

Import prices rose by 7.1% year-over-year in January compared to a
year-over-year increase of 5.6% in the January 2010-2011 period.

Non-fuel import prices ticked up 0.1% in January, the second
straight increase after a 0.2% rise in December. Over the past 12
months, nonfuel import prices rose by 2.9%. Non-petroleum import prices
were unchanged in January.

The BLS said the prices for the major nonfuel categories were
mixed. Increases were reported for foods and beverages import prices
(+2.3%), capital goods (+0.4%) and automotives (+0.5%). Meanwhile,
prices for nonfuel industrial supplies (-0.8%), and consumer goods
excluding autos (-0.4%) declined.

Prices for nonfuel imports rose 2.9% over the past year.

Fuel import prices also contributed to January’s overall increase,
up 1.0% following a 0.2% increase the previous month. The BLS said the
January rise was fueled by a 1.2% rise in petroleum import prices. In
contrast natural gas import prices continued their decline, down 5.8% in
January after falling by 4.1% in December.

Petroleum import prices rose by 23.7% year-over-year, offsetting
the 22.5% decline in natural gas prices, and pushing the overall fuel
import price index up by 20.% for the same period.

By region, prices of imports from China increased by 0.3% in
January.

Prices of imports from the European Union declined by 1.1%, the
largest monthly drop since a 1.5% drop in December 2008. Within that,
prices of imports from Germany fell 0.9%, the largest monthly decline
since a 1.2% drop in June 2010.

Prices of imports from Mexico rose 1.2% last month, while the price
of imports from Canada declined by 0.5%.

The export price index rose by 0.2% in January after a 0.5% decline
in December. The BLS attributed the increase to higher agricultural
export prices, up 1.1%. Prices for non-agricultural exports saw no
change.

Export prices rose 2.5% year-over-year.

The report, the only one of its kind done in or out of government,
itself is largely but not entirely made up of monthly price changes
submitted voluntarily by firms, with some items priced quarterly. The
BLS also makes quality adjustments to the price quotes if the product
has been improved.

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: MAUDS$,M$U$$$,MT$$$$]