Nonfuel import prices rise 0.4% on weak dollar, commodities boom By Rex Nutting, MarketWatch WASHINGTON (MarketWatch) -- Led by higher prices for oil and gas, the prices of goods imported into the United States jumped 1.4% in January, the sixth straight increase, the Labor Department estimated Wednesday. Fuel prices rose 5.3% in January, including an 18.8% increase in natural gas prices. Petroleum prices rose 4.8%, according to the Bureau of Labor Statistics. Prices of nonfuel imports rose 0.4% for the fifth time in the past six months, led by prices of industrial materials. On the other hand, prices of imported capital goods and autos fell 0.1%. Read the full report on the BLS website. In the past 12 months, import prices have risen 11.5%, a dramatic turnaround from the 19.1% year-over-year decline seen in July. Imported petroleum prices have risen 95.5% in the past 12 months after falling 51.4% in the12 months before that. Economists surveyed by MarketWatch were expecting import prices to rise 1.1% in January after an upwardly revised 0.2% gain in December. See our complete economic calendar and consensus forecast. The value of the dollar increased 0.7% in January, but has dropped about 8% in the past year. A weaker dollar makes imports priced in other currencies relatively more expensive and makes U.S. goods relatively cheaper. Some analysts are concerned that the weakening dollar could lead to higher inflation in the United States through higher import prices. Others would welcome a weaker dollar as a boost to domestic production. In a separate report, the Commerce Department said housing starts rose 2.8% to a seasonally adjusted annual rate of 591,000 in January and revised December's new construction higher. See full story on housing starts and building permits. Details Prices of goods exported from the United States rose 0.8% in January, and are up 3.4% in the past year. Prices of agricultural exports rose 1.4% in January and are down 10% in the past year. Nonagricultural export prices rose 0.7% in January. Accelerating import prices in January were largely confined to industrial supplies, which jumped 3.8% in price, and foods and feeds, which rose 1.3%. Prices of nonfuel industrial supplies increased 2.6%, led by metals, plastics and chemicals. Prices of imported capital goods fell 0.1%. Prices of imported autos fell 0.1%. Prices of imported consumer goods excluding autos rose 0.2%. Prices of exported capital goods rose 0.2% in January. Prices of exported industrial materials increased 1.9%. Prices of exported consumer goods excluding autos fell 0.3%. Prices of imports from Canada jumped 3.6%, while imports from the Middle East cost 3.4% more. Prices of imports from European Union increased 0.2%. Prices of imports from China fell 0.3%, the largest decline since April. Prices of Japanese imports were unchanged.

Source