Import Prices Continue To Rise Sharply In April, Thursday, May 10, 2007 9:15:58 AM

The Department of Labor released its report on import and export prices in the month of April on Thursday, showing that import prices continued to rise sharply due in large part to a substantial increase in the prices of petroleum imports.

The report showed that import prices rose 1.3 percent in April following a revised 1.5 percent increase in March. With the increase, the Labor Department`s index of import prices rose to its highest level since petroleum prices peaked in August of 2006.

The increase in import prices was largely due to a 6.5 percent increase in prices of petroleum imports, which followed a revised 8.1 percent increase in the previous month. Excluding petroleum imports, import prices edged up only 0.2 percent.

The Labor Department said that the modest increase in non-petroleum import prices was led by a 0.9 percent increase in prices for non-petroleum industrial supplies and materials. Higher metals prices more than offset falling prices for natural gas and chemicals.

The report also showed that export prices rose 0.3 percent in April after a revised 0.6 percent increase March. This marks the slowest pace of growth since export prices fell 0.3 percent in October of 2006.

The modest increase in export prices came as prices for agricultural exports fell 1.3 percent in April after rising 2.0 percent increase in the previous month. Excluding agricultural exports, export prices rose 0.4 percent.

Higher prices for non-agricultural industrial supplies and materials contributed to the increase in non-agricultural export prices, with prices for fuels, chemicals, and iron and steel products all rising compared to the previous month.

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