Washington: US import prices rose less than expected in April as a rebound in the cost of petroleum products was tempered by a drop in food prices, the latest indication that inflation pressures were increasing moderately.

The Labor Department said on Friday import prices rose 0.3 per cent last month. Data for March was revised to show import prices falling 0.2 per cent instead of being unchanged as previously reported.

Economists polled by Reuters had forecast import prices rising 0.5 per cent in April. In the 12 months through April, import prices increased 3.3 per cent, matching March’s gain.

The report came on the heels of data this week showing tame monthly consumer and wholesale price readings in April. But with oil prices rising in recent days, economists expect prices to push higher in the coming months.

Crude prices touched 3-1/2-year highs this week after President Donald Trump pulled the United States out of an international nuclear deal with Iran and promised tough sanctions against Tehran.

Inflation is flirting with the Federal Reserve’s 2 per cent target. The US central bank’s preferred inflation measure, the personal consumption expenditures price index excluding food and energy, accelerated 1.9 per cent year-on-year in March after rising 1.6 per cent in February.

US financial markets were little moved by the import prices data.

Last month, prices for imported petroleum rebounded 1.6 per cent after declining 2.2 per cent in March. Excluding petroleum, import prices edged up 0.1 per cent in April after being unchanged in the prior month. Import prices excluding petroleum rose 1.7 per cent in the 12 months through April.

Consumer goods

The cost of imported food fell 0.4 per cent in April, declining for a second straight month, while prices for imported capital goods were unchanged. The cost of imported motor vehicles nudged up 0.1 per cent. Prices of consumer goods excluding automobiles gained 0.1 per cent Import prices for nonfuel industrial supplies and materials increased 0.7 per cent after jumping 1.0 per cent in March. They were driven by a 4.0 per cent surge in the prices of iron and steel mill products. Trump imposed a 25 per cent import tariff on steel in March to shield domestic producers from what he said was unfair competition.

The cost of goods imported from China slipped 0.1 per cent in April, the first drop in seven months, after rising 0.2 per cent in March. Prices increased 0.2 per cent in the 12 months through April.

The report also showed export prices accelerated 0.6 per cent in April after gaining 0.3 per cent in March. Prices for agricultural products fell 1.2 per cent last month, the first drop since December 2017, weighed down by lower prices for soybeans, nuts and wheat.

Export prices increased 3.8 per cent on a year-on-year basis, the largest gain since November 2011, after rising 3.4 per cent in March.