Steady Import Prices Good Inflation News

A decline in prices of imported oil helped keep overall U.S. import prices unchanged in July, the government said in a report that offered more good inflation news for the Federal Reserve. The Labor Department said import prices held steady in July, after a 1.2% gain in June, as a 0.3% increase in consumer goods prices was offset by a 2.4% decline in the price of imported petroleum. Economists were expecting a 0.2% rise in import prices for July. Petroleum import prices have increased 59.5% since July 1999, helping push overall import prices 6.6% above year-ago levels. Prices of all imports, excluding petroleum, increased 0.3% in July after a 0.1% gain in the previous month. Prices of imported automobiles and parts increased 0.2% in July, while prices of industrial supplies and materials declined 0.3%. In a separate report, the Labor Department said the number of people filing for weekly jobless benefits rose by 18,000 to 293,000, a level indicating that labor market conditions remain tight. But the four-week moving average, which irons out weekly fluctuations, fell 6,750 to 288,500.