By Brai Odion-Esene and Ian Mckendry

WASHINGTON (MNI) – The U.S. import price index rose in September at
its fastest pace since April, up 0.3% after falling by a revised 0.2% in
August, with higher prices for both fuel and non-fuel imports feeding
the increase, the Bureau of Labor Statistics reported Friday.

The export price index also rose in September, the BLS said.

The BLS noted that over the past five months, import prices have
shown little net change. “Overall, import prices have not changed by
more than 0.6% in any month since rising 2.6% in April,” it said.

Import prices rose by 13.4% year-over-year in September — led by a
sharp rise in fuel prices according to the BLS — after increasing by
13.0% y/y the prior month.

Non-fuel import prices rose 0.2% in September, the same rate at
which they increased in August. Over the past 12 months, nonfuel import
prices rose by 5.5%. The largest previous y/y advance was 6.1% for the
year ended Sept. 2008. Non-petroleum import prices rose by 0.2% in
September.

The BLS said the main contributor to the jump in nonfuel import
prices were rising nonfuel industrial supplies and materials prices, up
0.7%. Contributions were also made by a 0.5% rise in import prices for
foods and beverages as well as higher prices for finished goods; capital
goods (+0.1%), automotive vehicles (+0.1%) and consumer goods excluding
autos (+0.3%).

Adding to the rise in September import prices was a 0.1% jump in
fuel import prices, although the BLS noted that they have declined in
three of the past five months, falling by 4.1% over that period. A 0.3%
rise in import petroleum prices led the way, and helped offset a 4.8%
decline in natural gas prices.

Year-over-year, petroleum import prices rose by 45.9% and natural
gas prices rose 9.2%, pushing the overall fuel import price index up by
43.4% for the same period.

By region, prices for imports from China increased by 0.2% in
September, prices for imports from the European Union were up 0.1%.

Import prices from Mexico were unchanged last month, while the
price of imports from Canada declined by 0.6%.

As mentioned earlier, the export price index rose last month, up
0.4% after rising by 0.5% in August. The BLS attributed the increase to
both the 0.3% jump in non-agricultural export prices, and the 1.6% rise
in agricultural exports prices.

Export prices rose 9.5% 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$$$,MT$$$$]