US trade gap widens, import prices surge
published: Sunday | June 11, 2006

WASHINGTON (REUTERS):

THE UNITED States trade deficit widened less than expected in April, but oil import prices surged again in May, government reports showed on Friday, increasing expectations the Federal Reserve will raise rates again to try to curb inflation.

The U.S. trade gap widened to US$63.4 billion in April, lower than the US$65 billion shortfall Wall Street analysts had expected. However, another government report put import prices up 1.6 per cent in May, more than twice the increase expected.

Although the month-to-month change in the trade deficit was less than expected, the trade gap still grew 2.5 per cent from a slightly revised estimate of US$61.9 billion in March. In the first four months of this year, the trade gap totalled US$254.2 billion, on pace to surpass the record of US$716.7 billion set for all of last year.