"Import prices were certainly a problem for businesses in the last three months, but we've seen those pressures ease"
- Jacob Oubina, a senior U.S. economist at RBC Capital Markets LLC
U.S. import prices increased more than expected in March, 1.3 per cent, reflecting higher fuel costs, the Labor Department said Wednesday.
"Given what's been driving import prices, which is the oil component, you're likely to see a slight moderation or even greater moderation going forward," said Jacob Oubina, a senior U.S. economist at RBC Capital Markets LLC in New York.
"Import prices were certainly a problem for businesses in the last three months, but we've seen those pressures ease."
U.S. stocks ended Wednesday's session higher.
The Standard & Poor's 500 rose by 0.74%, or 10.12 points, to 1,368.71. The Dow Jones Industrial Average gained 0.70%, or 89.46 points, to 12,805.39. The Nasdaq Composite Index increased by 0.84%, or 25.24 points, to 3,016.46.
"The environment is still very positive for stocks," Robert Hagstrom, fund manager at Legg Mason Capital Management Inc., said.
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