By Brai Odion-Esene and Ian Mckendry

WASHINGTON (MNI) – The U.S. import price index rose in August for
the second straight month, up 0.6% after rising by a revised 0.1% in
July, with higher fuel and non-fuel prices feeding the increase, the
Bureau of Labor Statistics reported Wednesday.

The export price index also rose in August, the BLS said, after
declining the previous two months.

Import prices rose 4.1% year-over-year for August, the smallest
12-month increase since it rose by 3.4% in November 2009.

Aiding the increase in August import prices was a 1.7% jump in fuel
import prices — responsible for approximately 58% of the overall
increase, the BLS said. A 2.1% rise in petroleum prices led the way, and
helped offset a 3.5% decline in natural gas prices.

Year-over-year, petroleum import prices rose 8.5% and natural gas
prices rose 25.0%, pushing overall fuel import price index up 9.1% for
the same period.

Non-fuel import prices also rose in August, up 0.3% after a revised
0.2% decline in July. Over the past 12 months, nonfuel import prices
rose 2.9%. Non-petroleum import prices fell by 3.1% in August.

The BLS said the main contributor to the jump in nonfuel import
prices was the 2.2% rise in foods and beverages — largest since March
2008 — as well as higher prices for finished goods; capital goods
(+0.2%), automotive vehicles (+0.3%) and consumer goods excluding autos
(+0.3%).

Non-fuel prices rose 2.9% over the past year, but the BLS said
unlike the monthly increase, this rise was led by higher non-fuel
industrial supplies and materials prices, up 13.0% for the August
2009-2010 period.

By region, prices for imports from China saw no change, prices
for imports from the European Union were up 0.3% in August.

Import prices from Mexico rose by 0.7%, Canada also up 0.7%.

As mentioned earlier, the export price index rose last month, up
0.8%. The BLS attributed most of the increase to both the 0.5% jump in
non-agricultural export prices, and 4.2% rise in agricultural exports
prices.

Export prices rose 4.1% 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 **

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