Forex

WASHINGTON (AP) - With oil prices soaring, a government index tracking the cost of imported goods in February is expected to increase, though at a slower rate than the previous month.

The Labor Department's monthly import-price index, to be released Thursday, is forecast to increase by 0.6 percent in February compared with January, according to a survey of Wall Street economists by Thomson Financial/IFR. The index, which economists consider a useful tool in measuring the overall inflation rate, is scheduled to be released at 8:30 am EDT.

Changes in import prices are heavily influenced by the price of oil, which reached a record $103 a barrel in February. Oil has traded at even higher prices this month, finishing above $108 on Tuesday.

Import prices rose 1.7 percent in January, driven largely by a 5.5 percent increase in the price of petroleum imports, the Labor Department said last month. Non-petroleum import prices increased 0.6 percent.

On a year-over-year basis, the import price index was up 13.7 percent in January, the department said, the largest annual increase since the index began in September 1982.

The drop in the value of the U.S. dollar against other currencies, such as the euro, makes imports more expensive and contributes to increases in the index. The euro reached a record high of $1.55 in Wednesday trading due to concerns about ongoing U.S. economic weakness.