WASHINGTON, July 17 (Reuters) – U.S. import prices unexpectedly rose in June as declines in the costs of food and energy products were more than offset by higher prices for capital and consumer goods, leading to the largest annual increase in imported inflation in nearly four years.
Import prices increased 0.3% last month after a downwardly revised 1.7% advance in May, the Labor Department’s Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast import prices, which exclude tariffs, decreasing 0.7% after a previously reported 1.9% rise in May.
In the 12 months through June, import prices surged 7.1%. That was the biggest advance since August 2022 and followed a 6.6% increase in May. The monthly increase in import prices bucked declines in producer and consumer prices in June, which were attributed to the retreat in oil prices as a fragile ceasefire between the United States and Iran took hold. That truce collapsed last week, pushing oil prices to a one-month high.
Prices of imported fuel fell 0.4% last month after rising 12.6% in May. They jumped 44.1% year-on-year in June. Imported food prices eased 0.2%. Excluding food and fuels, import prices increased 0.4% after advancing 0.8%. The so-called core imported inflation increased 4.6% in the 12 months through June.
Core imported inflation was boosted by a 0.4% increase in imported capital goods prices, reflecting strong demand for technology products as businesses ramp up investment in artificial intelligence. Prices for imported consumer goods, excluding automotives, rose 0.3%. The cost of imported automotive vehicles, parts and engines eased 0.1%.
(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
