US March import prices may have up

US March import prices may have up

According to recent market reports, prices of goods imported to US may have enhanced by 0.6% in March due to decline in the value of US Dollar and increases in costs of oil and other raw materials. US Dollar lost about 12% of its value during the last twelve months ended in March and cost of crude oil increased by 10% in the past three months as the Organization of Petroleum Exporting Countries contemplated cutting production. The decrease in the value of the US Dollar makes imported goods more expensive. Therefore, US companies may raise prices. An increase in demand worldwide has also soared prices for other commodities. Steel prices in US showed an upward trend as steelmakers faced increased costs for raw materials such as iron ore and coking coal. The increases in steel prices affected many sectors. For instance, A.O Smith, US' largest commercial water heater maker, have to decrease its 2004 profit forecast due to rise in steel and shipping costs. A.O Smith also increased its prices because of high steel prices. In addition, inflation in US is expected to increase in 2004. The consumer price index may rise 2% this year which is higher than last month's forecast of 1.8% and 1.9% increase in 2003.