By Brai Odion-Esene and Ian Mckendry

WASHINGTON (MNI) – The U.S. import price index rose in October, up
0.9% after edging down by a revised 0.1% in September, with higher fuel
and non-fuel prices feeding the increase, the Bureau of Labor Statistics
reported Wednesday.

The export price index rose for the third consecutive month in
October, the BLS said, up by 0.8%.

Import prices rose 3.6% year-over-year for October, a slight
increase over last month’s 3.5% year-over-year increase.

Aiding the increase in October import prices was a 3.0% jump in
fuel import prices — responsible for approximately two-thirds of the
overall increase, the BLS said. The rise in fuel import prices, the
largest since a 4.4% increase in January, was driven by a 3.3% rise
in petroleum prices, which offset a 2.3% decline in natural gas import
prices.

Year-over-year, petroleum import prices rose 7.6% and natural gas
prices rose 9.5%, pushing the overall fuel imports price index up 7.9%
for the same period.

Non-fuel import prices also rose in October, up 0.3% after a
increasing by the same level in September. Non-petroleum import prices
rose by 0.4% in October.

The BLS said the main contributor to the jump in nonfuel import
prices was the 1.9% rise in import prices for non-fuel industrial
supplies and materials, and the 1.1% jump in foods and beverages import
prices (up 9.8% y/y). Prices for finished goods were mixed, with
automotive vehicle prices rising 0.4% in October, while import prices
for consumer goods excluding autos fell by 0.5%.

The non-fuel import price index rose 2.5% over the past 12 months,
led higher by the 11.8% y/y rise in prices for non-fuel industrial
supplies and materials.

By region, prices for imports from China rose 0.4%, while prices
for imports from the European Union were down 0.1% in October.

Import prices from Mexico rose by 0.6%, Canada by 1.4%.

As mentioned earlier, the export price index rose last month, up
0.8%. The BLS attributed the increase to both the 0.7% jump in
non-agricultural export prices, and the 2.5% rise in agricultural
exports prices.

Export prices rose 5.8% year-over-year, the largest 12-month change
since a 7% increase between September 2007 and September 2008.

The report, the only one of its kind done in or out of government,
itself is largely but not entirely made up of monthly price changes
submitted voluntarily by firms, with some items priced quarterly. The
BLS also makes quality adjustments to the price quotes if the product
has been improved.

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: MAUDS$,M$U$$$,MT$$$$]