UPDATE 1-U.S. import prices rise 0.7 pct in October

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WASHINGTON Nov 13 (Reuters) - U.S. import prices rose for the third straight month in October, pushed up by a jump in the cost of fuel imports and the depreciating dollar, a government report showed on Friday.

The Labor Department said import prices advanced 0.7 percent after a revised 0.2 percent increase in September that was previously reported as a 0.1 percent gain. However, the increase was below market expectations for a 1.0 percent rise.

The price of fuel imports jumped 1.8 percent after declining 1.5 percent in September, while the cost of non-fuel imports rose 0.4 percent last month, reflecting the U.S. dollar's sharp depreciation.

So far this year, the dollar has lost about 7 percent of its value against a basket of major currencies.

However, overall import prices were down 5.7 percent compared to October last year, pointing to muted inflation pressure even as the economy grows after the most brutal U.S. recession in 70 years.

The Labor Department report also showed prices for U.S. exports rose 0.3 percent in October, a touch above market expectations for a 0.2 percent increase, after falling 0.2 percent the previous month.

Prices for agricultural exports fell 1.0 percent, while those for nonagricultural exports rose 0.3 percent. Compared to October last year, export prices were down 3.4 percent. (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)