Import prices rise 2.3 percent in May

WASHINGTON (Reuters) - U.S. import prices rose 2.3 percent in May as expected, capping the biggest three month increase in more than 17 years, as petroleum import prices climbed, a government report showed on Thursday.

The 7.9 percent three-month rise in import prices was the largest since October 1990, the Labor Department said.

Export prices rose a smaller-than-expected 0.3 percent, the slimmest monthly rise since September.

When petroleum imports were excluded, import prices rose a more modest 0.5 percent. Petroleum import prices climbed 7.8 percent in the month and are up 68.8 percent for the year ended in May, the largest annual increase since February 2003.

(Reporting by Mark Felsenthal; Editing by Theodore d'Afflisio)