The US Labor Department reported this morning that the import prices rose 2.6 percent during the month of June and rocketed 20.5 percent higher from a year earlier, marking the sharpest gain since record-keeping began in 1983. A breakdown of the report shows, unsurprisingly, that petroleum was responsible for the majority of the increase as the component jumped 7.4 percent during the month and a whopping 78.6 percent from a year earlier. Likewise, industrial supplies and food/beverages led the broader index higher as well, as the components rose 5.8 percent and 1.9 percent, respectively. Pure raw material costs aren’t responsible for the increase alone, as the report also shows that import prices from Canada rose 3.4 percent in June and 25.6 percent from a year earlier, as the Canadian dollar remains strong against the US dollar. Overall, it is clear that price pressures persist in the US economy, which may only slow growth further in coming months. – Terri Belkas, Currency Analyst for DailyFX.com