Washington, DC, April 15—-Import prices rose 1.8 percent in March, a rise that followed a 0.8 percent increase in February, according to a Labor Department report issued today.
Excluding petroleum, the index rose 0.3 percent after rising 0.1 percent.
Prices of imported industrial supplies excluding energy were up 1.1 percent in March, the biggest rise in four months.
Imported capital goods prices declined for a second month, automobile costs were unchanged from February and consumer goods fell for the first time since August, the report showed.
Consumer goods from overseas were up just 1 percent in the last 12 months, suggesting competition is helping prevent companies from passing along higher raw materials costs.
The rise in overall import prices was the biggest since a 1.8 percent increase in January 2003. Economists forecast a 1.4 percent rise in the index.
The costs of all imported goods last month were 7.1 percent greater than in March 2004. Excluding petroleum, they were up 2.9 percent from the same month last year, compared with a 2.8 percent gain in the 12 months that ended in February.
Prices of imported petroleum surged 10.6 percent last month, after rising 4.6 percent in February. Compared with a year earlier, the price was up 36 percent.
At their March 22 meeting, Fed policy makers said inflation risks were "now tilted a little to the upside." Central bankers last month raised their target rate for overnight bank lending a quarter point to 2.75 percent.
Imported food prices rose 3.4 percent after rising 1 percent the month before.
Prices for imported consumer goods other than automobiles fell 0.4 percent after rising 0.5 percent the prior month.
