US import prices rose in May, the first gain since September, due to rising prices of petroleum imports, the US government said today.
The Labor Department said import prices edged up 0.3 per cent in May after dropping 0.6 per cent in April.
With the US dollar gaining strength in recent months, import prices have steadily fallen, and in May they were 0.8 per cent below year-ago levels. Indeed, import prices had not increased since last September, when they gained 1.1 per cent.
May's rise in import prices was due mainly to a 5.5 per cent increase in the price of petroleum and petroleum product imports, which more than outweighed a 0.2 per cent decline in prices of imports excluding petroleum products.
The increase in oil-related import prices goes against the recent trend, which has seen prices of imported petroleum products drop 1.8 per cent since May of last year.
Meanwhile, export prices fell 0.3 per cent in May after a 0.1 per cent decline in April.
The report was good news for the economy, showing few signs that inflation was being imported into the United States. Some economists are concerned about the risk of importing inflation, although that risk has been largely contained by the rise in the value of the US dollar against other currencies.