A surge in imported oil prices pushed March 2008 import prices up 2.8%, the largest increase in four months, the U.S. Labor Department announced Friday.

Economists surveyed by Bloomberg News had expected March 2008 import prices to rise 1.8%. Meanwhile, March 2008 export prices rose 1.5%.

On a year-over-year basis, import prices are up almost 15% -- a level that historically indicates that U.S. consumer price inflation will trend higher, due to price pressure from foreign goods/services.

U.S. Federal Reserve officials, economists, executives, analysts and others closely monitor changes in import and export prices because they provide a read on inflation in the U.S. and internationally. Furthermore, the data frequently has a direct impact on the bond and the currency markets.

Imported oil prices rocked 9.1% in March 2008, natural gas jumped 7.7%, and feeds/foods/beverages increased 2.5%.

Concerning exports, agricultural prices increased 4.1% in March 2008, non-agricultural prices advanced 1.2%, consumer goods and automobiles each rose 0.2%, and capital goods prices were unchanged.

Economic Analysis: In general, a negative March 2008 import price report. The key stats are the continual, large increase in imported oil prices and the alarming, 15% year-over-year increase in import prices. It's very hard for the U.S. Federal Reserve, and for Americans, to get control of inflation / limit costs in the face of such large, sustained energy price increases. Economists and analysts had hoped that oil prices would moderate by early 2008, but petroleum has continued to march higher, for a variety of factors (demand, oil as an investment, weak dollar), suggesting that the only thing the U.S. can do to reduce its imported oil bill is to substantially lower consumption and/or use energy substitutes.