US Import Prices Rise 0.3% Defying Forecast, Hit Highest Year-Over-Year Since 2022

US import prices rose 0.3% month-over-month in last month, defying market expectations of a 0.7% decline, according to data released by the US Department of Labor on the 17th (local time). The increase was driven by non-fuel import price gains that more than offset declines in fuel import prices. The year-over-year increase of 7.1% marks the highest level since August 2022, when the index rose 7.7%.

The month-over-month increase of 0.3% represented a deceleration from the previous month's 1.7% gain. The Department of Labor stated that "in June, rising non-fuel import prices more than offset declining fuel import prices."

Fuel Import Prices Decline While Non-Fuel Prices Rise

Fuel and lubricant import prices fell 0.4% month-over-month, marking the first decline since January when they dropped 1.2%. Within the fuel category, petroleum prices decreased 0.7%, while natural gas prices surged 9.2%.

Non-fuel import prices rose 0.4% month-over-month. Food, feed, and beverage prices declined 0.2%, while non-fuel industrial raw materials and supplies increased 1.2%.

Capital Goods and Industrial Materials Drive Non-Fuel Increases

Among major finished goods categories, import capital goods prices rose 0.4%. This increase was attributed to higher prices for computers, peripherals, and semiconductors, as well as industrial and service machinery and scientific and medical equipment.

Export Prices Fall Below Market Expectations

Export prices declined 0.6% month-over-month, falling more than the market forecast of a 0.4% decrease.

FAQ

What were US import prices in last month compared to market expectations? US import prices rose 0.3% month-over-month in last month, contrary to market expectations of a 0.7% decline, according to the US Department of Labor.

Why did US import prices increase despite fuel price declines? Non-fuel import prices rose 0.4%, more than offsetting the 0.4% decline in fuel and lubricant import prices. The increase was driven by higher prices for capital goods including computers, semiconductors, and industrial machinery, as well as a 1.2% rise in non-fuel industrial raw materials.

How do current year-over-year import price increases compare historically? The 7.1% year-over-year increase in import prices is the highest since August 2022, when the index rose 7.7%.