U.S. March import prices rise 2.8% vs. 2.2% expected

U.S. import prices rise 2.8% in March

Jump in petroleum prices pushes gauge to highest since November 2007

By Robert Schroeder, MarketWatch

Last Update: 9:31 AM ET Apr 11, 2008

WASHINGTON (MarketWatch) — A surge in prices for imported petroleum pushed
prices of goods imported into the U.S. higher by 2.8% in March, the most since
November 2007, the Labor Department reported Friday.

Imported petroleum prices jumped by 9.1% last month, marking the biggest such
increase since rising 12.4% in November 2007.

On a year-over-year basis, the price of imported petroleum has risen by a
whopping 60%.

The price of imported natural gas also surged, higher by 7.7% in March, after
rising 9.9% in February.

The overall increase was more than anticipated. Economists surveyed by
MarketWatch had been on the lookout for March import prices rising by 2.2%.

Economist Zach Pandl of Lehman Brothers said rising import prices and the long
upward trend in food and energy commodities are keeping upward pressure on core
inflation.

But looking ahead, “we expect the deflationary effects of sluggish economic
growth to gather steam, eventually dragging core inflation down to more
comfortable levels,” he said.

Excluding petroleum, import prices rose by just 1.1% in March. Taking all fuels
out of the equation, import prices climbed by 0.9%.

Meanwhile, U.S. export prices for March rose by 1.5% — the largest one-month
increase since the Labor Department began publishing monthly index data in
December 1988.

Agricultural exports accounted for much of the overall price rise, climbing by
4.1% in March. And for the 12 months running through March, they were up 33.4%,
the biggest annual increase since the index was first published in June 1985.

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