April U.S. import prices rose 1.8%, the U.S. Labor Department announced Tuesday, as petroleum and non-petroleum imports contributed to the rise for the second straight month.

Excluding petroleum/oil, prices increased 1.1%. Economists surveyed by Bloomberg News had expected prices to rise 1.7%. Meanwhile, March 2008 import prices rose a revised 2.9%.

On a year-over-year basis, import prices are up 15.6% -- a level that historically indicates that U.S. consumer price inflation will trend higher due to prices pressure from foreign goods/services.

Economist David H. Wang said the report contained few surprises. "The report continues to display the consequence of record-high oil prices, which are boosting inflation just about across the price spectrum," Wang said.

U.S. Federal Reserve officials, economists, executives, analysts and others closely monitor changes in import and export prices because they provide reads 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 surged 4.1% in April after rocketing 9.2% in March, capital goods increased 0.8%, automobiles increased 0.4%, consumer goods rose 0.2%, and feeds/foods/beverages increased 2.8%.

Also, export prices rose 0.3%. Concerning exports, agricultural prices decreased 2.2%, non-agricultural prices advanced 0.6%, capital goods rose 0.3%, automobiles added 0.4%, and consumer goods rose 0.4%.

Economic Analysis: In general, another 'bad news' import price report. The key stats are the continuing, large increase in imported oil prices and the alarming and inflation-feeding 15.6% 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 price increases for oil and other import goods. Economists and analysts had hoped that oil prices would moderate, but they've continued to march higher, for a variety of factors (demand, oil as an investment, weak dollar, geopolitical issues).