WASHINGTON, Jan 13 - The price of goods imported into the United States rose by less than expected in December, a government report showed on Tuesday, suggesting inflation in the economy is subdued. U.S. import prices rose 0.2 percent in December, the third consecutive climb, after increasing 0.5 percent the previous month, the Labor Department said. Wall Street economists had expected a rise of 0.4 percent. Rising petroleum costs helped push up the price of imports. Excluding the 1.8 percent increase in the price of petroleum products, import prices rose just 0.1 percent.
The department said export prices rose 0.2 percent in December, helped by a 1.0 percent increase in the cost of foods, feeds and beverages. The price of meat exports dropped 3.0 percent after rising 1.7 percent in November. The data will likely reinforce economists' views that the Federal Reserve has little to fear from inflation when deciding monetary policy. Earlier this month, Fed Governor Ben Bernanke said that while the sluggish U.S. economy appeared to have turned a corner, it was right to hold interest rates at 45-year lows given the low rate of inflation.//www..com