The cost of imported goods rose in July more than expected

A weak dollar, tight credit and higher oil prices are all affecting inflation as the cost of goods imported into the U.S. rise

(AXcess News) New York – Higher crude oil prices were to blame for the rise in the price of goods imported into the United States in July, which suggests inflation may not be in check. July’s increase marked the largest gain in the cost of imported goods since March, rising 1.5 percent in July compared to the 0.9 percent increase the prior month.

Excluding oil, the cost of goods imported in July rose 0.2 percent.


Economic pundits, on average, were looking for July import prices to rise 1 percent. The higher-than-expected cost of imported goods into the U.S. was a mark of inflation on the economy. Next week, two more reports are due which will give the market a more concise picture of the U.S. economy and the rate of inflation. Tuesday, the Department of Labor reports on wholesale prices followed by the consumer price index on Aug. 15, which is forecast to rise 0.2 in July for the second month in a row.

Compared with a year earlier, prices of imported goods rose 2.8 percent in July after a 2 percent gain in June. Excluding petroleum, prices also increased 2.8 percent in the past 12 months.

The imported petroleum index jumped 7 percent in July, the most since March, to reach the highest level ever. Prices were up 4.1 percent from the same time a year earlier. Food was another factor affecting the cost of imports.

AXcess News