U.S. Import Prices, Led by Fuel, Rise 1.8%

Source Bloomberg.com

Prices of goods imported into the U.S. increased 1.8 percent in April, led by a jump in fuel costs and metals that threatens to boost inflation.

The larger-than-expected gain followed a revised 2.9 percent rise in March that was higher than previously estimated, the Labor Department said today in Washington. Prices excluding petroleum increased 1.1 percent on higher costs for capital goods, industrial supplies and auto parts.

A decline in the dollar is making foreign goods more expensive, adding to inflation pressures as food and energy prices soar. The increase is one reason investors project Federal Reserve policy makers will hold interest rates unchanged in coming months, even as economic growth slows.

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