U.S. Import Prices Tumble in March

Prices for goods imported into the United States recorded their biggest drop in seven months in March as petroleum costs declined, but experts said the underlying trend pointed to a moderate rise in imported inflation as the dollar's rally fades.

The U.S. Labor Department said on Wednesday import prices fell 0.2% last month, the largest drop since August, after a 0.4% increase in February, lowering the year-on-year increase in import prices to 4.2% from 4.8% in February.

Economists had forecast the 0.2% decline last month for import prics.

Still, domestic inflation down south is rising. Most consumer inflation measures have pushed above the Federal Reserve's 2% target. A report on Thursday is expected to show producer prices unchanged in March, but rising 2.4% on a year-on-year basis