Import prices rebounded 0.7% last month after declining by 0.3% for two straight months, the Labor Department's Bureau of Labor Statistics said on Wednesday. Economists polled by Reuters had forecast import prices, which exclude tariffs, would rise 0.4%.
In the 12 months through August, import prices soared 7.0%, the largest increase since August 2022, after advancing 6.1% in July. The government last week reported accelerations in consumer and producer prices in August.
Higher inflation because of the oil price shock stemming from the US-Israeli war against Iran, and larger-than-expected nonfarm payroll gains in August are expected to push the Federal Reserve to raise interest rates later on Wednesday.
Imported capital goods prices increased 0.9% last month after rising 1.0% in July. Prices for nonelectrical machinery gained 1.2% for the second straight month in August. An artificial intelligence spending boom is driving up prices for imported capital goods.
Prices for imported consumer goods, excluding automotives, rebounded 0.5% after two straight monthly decreases. The cost of imported automotive vehicles, parts and engines was unchanged.
Prices of imported fuel slipped 0.1%, declining for a third straight month. Imported food prices edged up 0.1%. Excluding food and fuels, import prices jumped 0.8% after rising 0.3% in July. The so-called core imported inflation increased 5.6% in the 12 months through August.