U.S. import prices rise in April on improvement in energy and food prices

U.S. import prices rose in April on improvement in food and energy prices. Import prices grew 0.5 percent sequentially and 4.1 percent year-on-year in April. This is above consensus expectations of 0.1 percent sequential rise and 3.6 percent year-on-year rise.

Fall in prices of food and fuel had added to the subdued import prices in March. These two categories were anticipated to rebound in April. Petroleum prices were up 1.6 percent sequentially whereas food prices rose 0.3 percent in the month. Non-petroleum import prices were up 0.4 percent, the fourth consecutive rise. Meanwhile, autos, industrial supplies and consumer goods also added to the rise in import prices in the month.

Total import prices were up 4.1 percent year-on-year, while nonpetroleum import prices rose 1.4 percent, a rebound from the solid deflationary trend in 2014 and 2015. Recent trends are still in line with an improving imported inflation environment, as the impulse from the dollar appreciation and the drag from subdued global import prices gradually wane, noted Barclays in a research report.

“The healthy pace of imported inflation from industrialized trading partners and the continued improvement from the rest provide further support to our view”, added Barclays.