Other data indicated flat import prices but a decline in petroleum product costs. There are concerns over an increase in inflation due to the tight labor market and imported inflation pressures. The market saw one rate hike by the Fed last month and can expect at least two more over the course of this year.
The dollar saw a rise against other currencies on doubts over Syria attacks. Stocks traded higher on Wall Street while U.S. Treasury prices saw a drop.
A report by Reuters stated that import prices grew 3.6% in the 12 months through March. Imported petroleum prices dropped 1.3% in March. Import prices, excluding petroleum, increased 2.1% in the 12 months through March with a 0.1% rise in March alone. During March, the cost of imported food grew 0.6% while imported capital goods prices rose 0.2%.
With growing fears of a trade and tariff war looming the market stalwarts, a positive indication in the labor market is indeed a silver lining.