MNI DATA ANALYSIS: December US Import Prices Up 0.1%>

--Import Prices Ex. Fuels Down 0.1%, Ex-Petro Down 0.2%

--Import Prices Up 3.0% Y/Y, Ex-Fuels Up 1.4% Y/Y, Faster Than 2016

--Fuel Prices Up 1.8%, Petroleum Up 2.0%, Natural Gas Down 4.9%

By Kevin Kastner, Sara Haire and Holly Stokes

     WASHINGTON (MNI) - U.S. import prices returned to a more normal 

pace in December, rising by 0.1% after a 0.8% surge in November, as a 

further energy surge was offset by softness in other components, data 

released by the Bureau of Labor Statistics Wednesday showed. 

     Overall fuel prices rose 1.8%, slower than an 8.4% jump in 

November, but still solid. Petroleum prices rose 2.0%, partially offset 

by a 4.9% decline in natural gas prices. 

     However, import prices were down 0.2% excluding petroleum and were 

down 0.1% excluding all fuels. There was weakness across the board in 

December, with prices for foods, feeds, and beverages down 0.7%, 

industrial supplies ex. fuels down 0.1%, and consumer goods prices down 

0.1%. Prices for capital goods and autos were flat. 

--Y/Y GAIN LED BY ENERGY

     Overall import prices were up 3.0% year/year, while prices 

excluding fuels were up 1.4% year/year and prices excluding petroleum 

were up 1.3% year/year, indicating that energy prices were the key 

driver of imported inflation. 

     However, the year/year measures for both overall import prices and 

prices excluding fuels showed significant acceleration from the year/year 

rates in December 2016, when overall prices rose 1.9% and nonfuel import 

prices rose 0.2%. 

     Excluding both fuels and feed, import prices were down 0.1% from 

November. The year-over-year rate of increase for this category was 

1.4%. 

--PRICES MIXED BY REGION

     By region, prices for imports from the EU was higher, but prices 

were flat from Canada, Mexico and Japan. Prices from China fell 0.1%. 

     Total export prices fell 0.1% in December as agricultural export 

prices fell 0.4%. Export prices excluding agriculture were flat. 

     Export prices were up 2.6% from a year earlier and were up 2.7% 

excluding agriculture. This compares with gains of 1.3% year/year and 

1.4% year/year, respectively in December 2016. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,MT$$$$,M$U$$$]