Import prices increase 0.1 in September
Core import prices fall 0.1

WASHINGTON, Oct 13 Reuters U.S. import prices increased less than expected in September as a strong dollar depressed prices of nonenergy products, which over time will help to lower domestic inflation.

Import prices edged up 0.1 last month, the Labor Department said on Friday. Data for August was revised higher to show prices climbing 0.6 instead of the previously reported 0.5.

Economists polled by Reuters had forecast import prices, which exclude tariffs, would gain 0.5.

The stronger U.S. dollar on the back of higher bond yields may be in danger of pricing American exports out of world markets, but it is doing one good thing, which is tamping down the prices of imported goods coming into the country and aiding the Fed39;s inflation fight, said Christopher Rupkey, chief economist at FWDBONDS in New York.

Prices for imported fuel rose 4.4, with petroleum increasing 4.9. Natural gas prices fell 7.8. Fuel prices advanced 8.8 in August. Imported food prices dropped 1.3. Excluding petroleum, import prices decreased 0.3.

In the 12 months through September, import prices dropped 1.7 after falling 2.9 in August. Annual import prices have now declined for eight straight months.

While data this week showed producer and consumer prices rising more than expected in September, underlying inflation remained moderate. That trend, together with a rise in U.S. Treasury yields and conflict in the Middle East, is…