U.S. import prices bested expectations in January amid further gains in the cost of energy products, even though a strong domestic dollar continued to dampen underlying imported inflation.
Figures released Friday by the U.S. Labor Department showed import prices increased 0.4% last month after an upwardly revised 0.5% rise in December. In the 12 months through January, import prices jumped 3.7%, the largest gain since February 2012, after making their way higher by 2% in December.
Economists had forecast import prices gaining 0.2% last month after a previously reported 0.4% increase in December.
Import prices are rising as firming global demand lifts prices for oil and other commodities, but the spillover to a broader increase in inflation is being limited by U.S. dollar strength.
The U.S. dollar gained 4.4% against the currencies of the United States' main trading partners in 2016, with most of the appreciation occurring in last months of the year.
This suggests that the greenback will continue to depress imported inflation in the near-term even though the dollar has weakened 2.9 percent on a trade-weighted basis this year.
The department also said prices for imported fuels increased 5.8% last month after rising 6.6% in December. Import prices excluding fuels fell by 0.2% following a 0.1% dip the month before. The cost of imported food dropped 1.3% after declining 1.5% in December.
