Oil costs cause first import price gain in five months

WASHINGTON, Wed Sep 12, 2012 – Import prices rose in August for the first time in five months as the cost of imported oil jumped, a factor that could weigh on American consumers and temporarily boost inflation.

Import prices climbed 0.7 percent last month, the Labor Department said on Wednesday.

The cost of petroleum imports increased 4.1 percent. Higher prices at the pump threaten to hurt consumers’ pocket books.

Analysts had expected overall import prices would rise 1.4 percent in August.

Many economists expect higher fuel costs will contribute to a short-term rise in inflation. At the same time, the U.S. Federal Reserve is still expected to ease monetary policy this week.

There was little sign of broader inflation pressures in the import data. Non-petroleum import prices declined 0.2 percent, a sign that the cooling global economy is reducing companies’ ability to raise prices.

Prices for imported consumer goods outside automobiles fell 0.3 percent, while prices were flat for cars and auto parts brought into the country.