US import prices rise in April

Prices of imported goods into the US have increased by 1.8 percent in April, and the hike has been driven by the increase in crude oil and raw materials which heighten the threat of inflation as the increase was larger than expected.

Analysts had forecast a 1.7 percent rise in import prices, whilst forecasting a 0.8 percent rise in export prices, even though a 1.5 percent gain was experienced back in March.

The decline in the value of the dollar is making foreign goods more expensive and this has fuelled the threat of inflation as both food and energy prices have risen, as prices excluding oil increased by 1.1 percent

The price increase is primarily the reason why the Federal Reserve may continue to keep interest rates unchanged at the expense of economic growth.

In comparison to last year, the costs of imported goods increased by 15.4 percent which is the biggest rise since the inception of the index in 1982.

The import-price index is the first of three monthly gauges of inflation that is used by the Labour Department.

It is expected that the government will issue its report on consumer prices and the current cost of living and the Labour Department’s report on wholesale prices next week.

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