The US trade deficit widened to a record $25.9 bn in October, pushed higher by a rising oil import bill.

The deficit in trade in goods and services was up 7.4% from a revised $24.2bn in September, the Commerce Department said.

Imports climbed 1.6% to an all-time high of $107.9 bn, reflecting the rising oil import bill and record imports of consumer goods ranging from clothing to camping gear.

In the past year, the price of a barrel of crude oil has jumped from $10 to $24.

Exports slipped 0.1% to $81.9bn as sales of farm products, telecoms equipment, computers and tobacco all fell.

So far this year, the trade deficit is running at an annual rate of $262bn, far greater than last year's record deficit of $164.3 bn.

Asian deficit

The deficits with Japan and China were also at record levels.

The October deficit with Japan was $7.2bn compared with $6bn for the same period last year. In September, the trade deficit with Japan was $6.6bn.

With China, the deficit also widened to a new record of $7.2bn from $5.5bn a year earlier.

Some analysts said the figures could prompt a further rate increase in the US.

John Shepperd, capital markets economist at Dresdner Kleinwort Benson, said: "It is telling you something about the domestic demand in the U.S. economy - it is still extremely robust...and that strength in domestic demand, which is generating employment growth, which is generating potential pressure on wage growth and that is what the Fed is concerned about."