U.S. import prices rise in May on higher fuel costs

U.S. import prices rose in the month of May, owing to increase in fuel costs. Import prices rose 0.6 percent. Excluding fuel, import prices continue to rise at a moderate pace and do not pose an immediate threat to more closely watched consumer inflation, noted Wells Fargo in a research report.

On a year-on-year basis, the import prices rose 4.3 percent in the month. Stripping fuel, import price inflation came in at 0.2 percent. Since the beginning of the year, the rebound in the dollar and slightly cooler global growth has curtailed the upward momentum in import prices. Excluding furl, prices rose 1.9 percent year-on-year, in line with the January rate.

As U.S. and global industrial activity has rebounded in the past year, price growth for related imports and capital goods has reinforced. Prices for imported consumer goods has picked up more recently, but having risen just 0.7 percent in the past year pose little threat to the overall consumer price inflation, stated Wells Fargo. Export prices have been strengthened by higher energy prices, but excluding food and fuel also rose to 3 percent year-on-year growth.

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