Key facts
- U.S. import prices rose 0.3% in June, contrary to economists' expectations.
- The annual increase in import prices was 7.1% through June, the largest since August 2022.
- Declines in food and energy costs were offset by increases in capital and consumer goods prices.
- Core imported inflation, excluding food and fuels, rose 0.4% in June and 4.6% year-on-year.
U.S. import prices unexpectedly rose by 0.3% in June, defying economists' expectations of a 0.7% decrease. This marks the largest annual increase in imported inflation in nearly four years, with a 7.1% surge recorded through June, up from 6.6% in May. The rise was driven by higher prices for capital and consumer goods, which more than offset declines in food and energy costs. Imported fuel prices fell 0.4% and imported food prices eased 0.2% in June. Core imported inflation, excluding food and fuels, increased by 0.4% for the month and 4.6% year-on-year. This increase in core imported inflation was influenced by a 0.4% rise in imported capital goods prices, reflecting strong demand for technology products as businesses invest in artificial intelligence, and a 0.3% increase in imported consumer goods prices excluding automobiles. The cost of imported automotive vehicles, parts, and engines decreased by 0.1%. The monthly rise in import prices contrasted with declines in producer and consumer prices reported for June, which were attributed to falling oil prices amid a fragile ceasefire between the U.S. and Iran that has since collapsed, pushing oil prices higher.