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 rise in import prices over the past three months was the largest since a comparable period ending 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.

The cost of imports from China were up 4.6 percent for the year ended in May, the largest annual increase since that index was first published in December 2003.

Food, feed and beverage import prices rose a modest 1 percent in May, but are up 13.9 percent over 12 months, the largest annual increase since March 1995.

Overall non-fuel imports climbed 0.5 percent. The 6.1 percent annual increase in that category is the biggest since that index was first published in December 2001.

(Reporting by Mark Felsenthal, Editing by Chizu Nomiyama)