Economist surveyed by Bloomberg News had expected import prices to rise 0.6% in February 2008. Import prices increased 1.7% in January 2008. In February 2008, imported petroleum prices declined 1.5%.
Meanwhile, exports prices increased 0.9% in February 2008, as U.S. exporters received stronger prices for agricultural products. These have experienced strong international demand as emerging markets spend more on food as their economies develop and real incomes rise.
Turning back to imports, the price indexes for consumer goods, automotive vehicles, and capital goods all rose, up 0.3%, 0.2%, and 0.1%, respectively. Conversely, foods, feeds and beverages prices edged down 0.1%, the first decline for the index since a 0.2% decrease in March 2007. Still, prices for foods, feeds and beverages have increased 11% in the past 12 months.
Regarding exports, agricultural prices rose 4.4% in February 2008 following a 5.0% increase in January 2008. The export agriculture price index is up 30.8% for the year ended February 2008, the largest 12-month rise since September 1988. Non-agricultural prices increased 0.5%. The increase in non-agricultural exports was led by a 1.1% non-agricultural industrial supplies and materials.
Economic Analysis: A surprisingly positive report, with one qualifier -- the decline in February 2008 petroleum prices is somewhat misleading. Petroleum prices surged 4.8% in January 2008, hence the category faced a 'difficult comparison' in February 2008, which helps explain the 1.5% price decline. Regarding exports, agriculture products continue to perform well -- reflecting strong international demand, and farming remains one of the bright spots in the U.S. economy.
Top growth fund manager sours on Apple, U.S. tech
New Facebook share structure hints at IPO
Before the bell: Futures higher ahead of housing, jobless data
