By Brai Odion-Esene and Ian Mckendry

WASHINGTON (MNI) – U.S. import prices rose for the seventh time in
the past eight months, up by 0.7% in March from the revised February
decline, led by higher prices for both fuel and nonfuel imports, the
Bureau of Labor Statistics reported Tuesday.

After being down 0.2% in February, the March import price index was
led up by a turnaround in fuel prices that the BLS said accounted for
approximately 80% of the increase. Import prices rose 11.4%
year-over-year for March.

Fuel Imports rose by 2.9%, following a 1.2% drop in February.
Within that, a 4.0% uptick in petroleum import prices was offset by a
1.2$ drop in natural gas prices.

Year-over-year, petroleum import prices rose 70.2% and natural gas
prices rose 19.0%, pushing overall fuel prices up 63.3% for the same
period. This followed a 50.7% drop for the March 2008-09 period.

Nonfuel import prices rose for the eighth straight month, up 0.2%
in March, and rose 2.7% over the past 12 months, the largest 12-month
increase since the index went up 4.8% for the October 2007-2008 period.
Non-petroleum imports rose by 4.0%.

The BLS said the increase in nonfuel import prices was led by
higher nonfuel industrial supplies and materials (+0.6%), foods (+1.4%)
and consumer goods (+0.3%) — excluding auto vehicles.

Lower prices for capital goods (-0.4%) and auto vehicles (-0.2%)
mitigated the overall advance.

By region, prices for imports from China fell 0.1%, and the index
has declined by 0.8% over the past 12 months. Prices for imports from
the European Union were unchanged.

Import prices from Mexico rose by 1.4% and are up 11.0% y/y in
March. Canada fell by 0.1% in March and was up 15.8% over 12 months, the
largest increase since the September 2008-2009 period (+18.6%).

Export prices increased for the fourth time in 5 months, rising
0.7% in March. The 2.1% rise in agricultural export prices accounted for
75% of the overall increase, the BLS said.

Export prices rose 4.6% 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$$$,MT$$$$]