Import Prices Up, but Inflation Still in Check

Washington, DC, Sept. 11, 2009--Higher oil prices lifted import prices by 2% in August, the fifth increase in the past six months, the Labor Department reported Friday.

Import prices have risen 7.6% so far in 2009 as energy prices have rebounded. Despite the recent gains, import prices are still down 15% over the past 12 months.

Imported fuel prices rose 9.8% in August, but they're down 39.6% in the past 12 months.

Prices of nonfuel imports into the U.S. rose 0.4% in August, the largest gain in a year. Nonfuel import prices are down 5.1% in the past year, showing that general deflationary pressures haven't been confined to energy goods.

"Despite the large monthly gain, there are very few inflationary pressures in the pipeline emanating from imports," wrote Jay Bryson, global economist for Wells Fargo.

Economists had been looking for import prices to rise 1% in August after falling 0.7% in July.

The value of the dollar fell about 1% during August against a trade-weighted index of other currencies. The dollar is down about 3% since the beginning of the year.

A weaker dollar makes imports relatively more expensive and makes U.S. exports more competitive in global markets.