Low-Cost Imports Helping U.S. Keep Inflation in Check

The prices U.S. businesses pay for imported goods excluding petroleum fell in May for the first time in almost a year, suggesting that inexpensive imports are helping keep inflation contained, government figures showed.

The index of imported prices for goods except petroleum products fell 0.2% last month after rising 0.1% in April, the Labor Department said. May’s decrease, due to falling prices of food, some capital equipment and consumer goods, was the first since a 0.1% decrease in July.

Including oil, prices of imports rose 0.6% in May after falling 1.5% a month earlier. Imported oil prices, which rose 72.1% since May 1999, have pushed up the overall import price index 6.4% in the past year. Non-petroleum imports rose 0.9% in the 12 months ended in May.

Separately, the Labor Department reported that the number of U.S. workers filing for state unemployment benefits rose last week to the highest level in five months. First-time jobless claims rose 20,000 to 309,000 for the week, the most since Jan. 8. Still, for the year to date, initial claims have averaged 280,000 a week, down from last year’s average of 298,000.

The rise in jobless claims could merely be a blip in counting that resulted from the Memorial Day holiday, analysts said.