Stacked shipping containers and cargo in U.S. trade port. (Photo: Reuters)
The Labor Department reported on Thursday that U.S. import prices boomed in May after 10 straight months of declines, fueled by the increased cost of petroleum. However, it could have been worse, as a relatively strong U.S. dollar continued to curb underlying inflation pressures imported from overseas.
Import prices gained 1.3 percent last month, which is the largest gain since March 2012, and April’s decline was revised to a 0.2 percent drop.
Economists polled by Reuters had forecast import prices rising 0.8 percent.
In the 12 months through May prices fell 9.6 percent and, last month, imported petroleum prices shot up 12.7 percent, which was the biggest increase since June 2009.
Import prices excluding petroleum were unchanged in the month of May, but the dollar has gained roughly 13.2 percent against the currencies of the United States’ major trading partners since June.
Imported food prices rose 0.3 percent after declining 1.0 percent in the prior month (April), while export prices increased by 0.6 percent last month after falling 0.7 percent (April). Export prices declined 5.9 percent in the 12 months through May, and April’s numbers mark the biggest gain since March 2014.
