US Import Prices Increase Solidly in February    

• U.S. import prices unexpectedly rose in February amid higher costs for consumer goods, which does not bode well for the inflation outlook.
• Import prices increased 0.4% last month, matching January's upwardly revised gain, the Labour Department's Bureau of Labour Statistics said on Tuesday. In the 12 months through February, import prices increased 2.0% after advancing 1.8% in January.
• Government data last week showed better-than-expected consumer and producer price readings in February, though there were firmer readings in the details that go into the calculation of the Personal Consumption Expenditures (PCE) price indexes, the inflation measures tracked by the Federal Reserve for its 2.0% target.
• Imported fuel prices increased 1.7% in February after surging 3.5% in January. Food prices were unchanged after climbing 0.2% in January.
• Excluding fuels and food, import prices shot up 0.4% after being unchanged in January. In the 12 months through February, core import prices rose 1.4%, reflecting earlier dollar strength against the currencies of the United States' main trade partners.

(Source: Reuters)