US import prices rose by a higher than expected 2.8 per cent in March as petroleum prices jumped 9.1 per cent, a US government report showed today.
Analysts had forecast a 2 per cent rise in prices after a 0.2 per cent gain in February.
US export prices rose 1.5 per cent during the month, also more than expected and the largest monthly gain on record, as prices for farm and food products continued to rise.
The rise in import prices boosted the dollar in early trading after the report. Stronger inflation could limit the Federal Reserve's ability to cut interest rates during the current economic slowdown.
Import prices have risen 14.8 per cent over the last 12 months, the largest year-to-year gain since the Labour Department began publishing the data.
A large factor was petroleum prices, which have risen 60 per cent over the past year, although prices for food, feed and beverages have increased 14 per cent. Export prices have climbed by 7.9 per cent over the same period, while prices for agricultural exports and food, feed and beverage exports have both risen more than 33 per cent.