Key facts
- Import prices rose 1.1% in September, exceeding the 0.8% forecast.
- The annual increase in import prices was 8.1% through September, the largest since July 2022.
- Higher costs for energy products and other goods drove the increase.
US import prices rose more than anticipated in September, driven by higher energy product costs and a variety of other goods, indicating persistent inflationary pressures. The Labor Department's Bureau of Labor Statistics reported that import prices increased by 1.1% last month, surpassing the 0.8% forecast by economists. This followed a revised 0.5% increase in August. On an annual basis, import prices climbed 8.1% through September, marking the largest rise since July 2022. The ongoing conflict in the Middle East is contributing to elevated oil prices and snarling supply chains. Despite the uptick in inflation, financial markets anticipate the Federal Reserve will hold interest rates steady at its upcoming meeting, with a potential tightening in December. The central bank had previously raised its benchmark interest rate by 25 basis points in September, setting the range at 3.75%-4.00%.