February’s import numbers are in, and the tally does not look good. Crude oil prices, which recently shattered the all-important $100 mark, continue to crimp American pocketbooks.
The cost of all imported items excluding fuel rose a modest 0.3 percent in February. But according to the Labor Department, once the higher cost of imported oil is factored in, the import-price index took a sharp 1.4% jump in February, which follows right on the heels of January’s 1.3 percent rise.
And the outlook is more of the same.
Continued unrest in the Middle East is only one factor. The repercussions from last week’s 8.9-magnitude earthquake that struck Japan on Friday is already being felt in global energy markets. The country, which has the world’s third largest economy, will have to dramatically increase imports of crude oil and natural gas to cover the shutdown of nuclear power plants that have been disabled and damaged.