9 September 2005, 17:09  U.S. import prices rise 1.3% on oil, natural gas

Prices of goods imported into the United States increased 1.3% in August, the fastest increase since March, the Labor Department said. The price gains were almost exclusively in energy goods such as crude petroleum and natural gas. Excluding the 7.1% rise in petroleum prices, import prices were flat, the fourth month in a row with no increase. Imported natural gas prices rose 4.3%. Excluding all fuels, import prices fell 0.2%, the fourth consecutive decline. The import price index shows no pressure on U.S. inflation outside of the energy sector. According to the MarketWatch survey, economists expected import prices to rise 1.2% in August after July's 0.8% gain, which was revised from 1.1%. Import prices were up 7.6% in the past year, down from 7.8% last month. Excluding petroleum, import prices were up 1.8% year-over-year. Petroleum prices were up 42.5% year-over-year. Meanwhile, prices of exports from the United States dropped 0.1% in August, with agriculture prices falling 0.6%. Export prices were up 3.1% in the past year. The August figures do not include any impact from Hurricane Katrina, which ravaged the Gulf Coast on Aug. 29, well after the monthly survey period. The figures highlight the issues facing the Federal Reserve when it meets in two weeks to consider an 11th quarter-percentage point interest rate hike: Headline inflation is soaring, but core inflation measures remain contained, at least so far. With the impact of the hurricane on the economy still unclear, some economists and many traders are urging the Fed to pause in September to let the smoke clear

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