U.S. Import Prices Down Again in April

U.S. import prices fell in April for the sixth month in a row, suggesting Asia’s economic problems will hold U.S. inflation in check in the months ahead, analysts said. Led by lower prices for industrial and consumer goods, import prices declined 0.1% last month after having fallen 1.0% in March, the Labor Department said. As imported goods become cheaper, U.S. companies are unable to raise prices--even if labor costs increase--because they must stay competitive with firms overseas. More than 30% of the goods consumed in the U.S. are imported, Merrill Lynch & Co. economists report. Except for oil, prices fell for most categories of imported commodities and goods, and from most regions. Although overall import costs declined in April, petroleum prices rose 2.5%--the first oil price increase in six months.