Imported goods prices rise in April
Prices of goods imported into the United States rose more than forecast in April, driven by gains in fuel and food that may put pressure on some companies to raise prices, Bloomberg reported.
The 2.2 percent increase in the import price index followed a revised 2.6 percent gain in March, according to figures from the U.S. Department of Labor. Bloomberg economists had projected a 1.8 percent increase.
Growing demand from economies in Asia and Latin America, as well as a weaker dollar, may keep pushing up the cost of goods from overseas. Businesses such as Whole Foods Market Inc. are trying to decide whether to pass increased prices on to consumers, and Federal Reserve Chairman Ben Bernanke said he expects elevated commodity costs to moderate.
“What’s important is that the non-fuel component is accelerating on the back of the weaker dollar, which adds modestly to inflation pressure in the U.S.,” said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in an interview with Bloomberg. “There’s going to be a lot of pushback at the consumer level to higher prices.”