U.S. Import Prices Rise Greater Than Expected 1.7%; Initial Claims Hit 8-Week High

The U.S. Labor Department reported a 1.7% increase in March prices for imported goods this morning, led by higher energy prices. Imports account for 17% of all goods bought in the U.S. The gain was the biggest in 10 months, as imported petroleum prices climbed 9%. Economists had been expecting a much smaller gain of between 0.6% (MarketWatch) and 0.8% (Bloomberg). Outside of increased energy prices, price rises for imports were modest, rising just 0.2%. In comparison, U.S. export prices rose 0.7%, paced by a 2.1% gain in agricultural goods prices. Excluding agricultural goods, export prices rose 0.6%. In another economic report released this morning, initial unemployment claims rose by 19,000 in the week ending April 7 to 342,000, the highest they've been in eight weeks. The four-week average, considered less volatile, rose by 7,000 to 323,250, the highest it has been in three weeks.

Sources: Bloomberg (i), (ii), MarketWatch (i), (ii)
Commentary: The US Dollar: Worthless - Or Just Worth Less? • Philly Fed, Americans Concerned About Economy • The Employment Report: Decent, But No Blowout
Stocks/ETFs to watch: S&P 500 Index (SPY), Diamonds Trust Series 1 ETF (DIA), iShares Lehman Aggregate Bond (AGG)

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