The cost of goods imported into the United States increased more than forecast in February as commodity prices soared, Bloomberg reported.

The 1.4 percent increase in the import-price index exceeded the 0.9 percent median estimate in a Bloomberg News survey last month. In January, the index rose by 1.3 percent as companies struggled to pass along the price hikes to their customers.

As the cost of food and oil increases, limited labor costs are restraining inflation and helping to explain why the Federal Reserve is likely to stay the course on monetary policy to encourage growth, according to Bloomberg.

“Underlying price pressures aren’t doing much,” said Stephen Gallagher, chief U.S. economist at the New York-based office of Societe Generale SA. “Companies that can’t really pass along the higher costs are being forced to absorb them. The Fed will stay on hold.”

Import prices excluding fuel rose 0.3 percent in February, according to the U.S. Department of Labor, less than half the 0.7 percent increase in January.
The cost of consumer goods rose by 0.3 percent on a year-over-year basis.