Import Prices Jump 2% As Oil Rises

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Prices for products brought into the country rose in August, boosted by a sharp advance in the price of oil. Meanwhile, export prices also rose, though at a more modest rate.

The U.S. Department of Labor revealed that import prices rose 2.0 percent in August. This followed a drop of 0.7 percent in the previous month.

A 10.5 percent rise in petroleum prices led the advance. Without this sector, import prices edged up 0.4 percent.

Petroleum prices bounced back from the previous month, when they were down by a revised 2.6 percent. It was a return to the sharp gains seen in June, when petroleum imports experienced a 17.2 percent price increase and overall import prices were up a revised 2.7 percent.

Compared with last year, import prices are down 15 percent. A sharp drop in oil prices from last year is a key reason for the slide. The price of petroleum imports came in 38.1 percent below last August.

Excluding petroleum, August import prices were down 6.5 percent from last year.

The weak economy over the past year, especially after the financial crisis began to become acute last September, has suppressed demand, forcing prices lower.

Export prices climbed 0.7 percent for the month, compared to a dip of 0.3 percent in July.

Compared to last year, August export prices were down 6.1 percent.

(Market News Provided by RTTNews)