Higher fuel prices lift US import prices; underlying trend soft
By Lucia Mutikani
WASHINGTON (Reuters) -U.S. import prices increased more than expected in August as the cost of energy products surged, but underlying imported price pressures remained subdued, which bodes well for the overall domestic inflation outlook.
Import prices increased 0.5% last month, the Labor Department said on Friday. Data for July was revised lower to show prices rising 0.1% instead of the previously reported 0.4%. Economists polled by Reuters had forecast import prices, which exclude tariffs, gaining 0.3%.
In the 12 months through August, import prices dropped 3.0% after decreasing 4.6% in July. Annual import prices have now declined for seven straight months.
Data this week showed inflation making steady progress toward the Federal Reserve's 2% target, with underlying consumer and producer prices rising moderately in August.
A jump in gasoline prices, however, boosted overall consumer and producer prices. The U.S. central bank is expected to leave interest rates unchanged next Wednesday. Since March 2022, the central bank has raised its benchmark overnight interest rate by 525 basis points to the current 5.25%-5.50% range.
Imported fuel prices accelerated 6.7% last month, the largest increase since March 2022, after rising 2.2% in July. Food prices gained 0.7%. Excluding fuels and food, import prices decreased 0.2% after a similar decline in July.
These so-called core import prices dropped 1.3% on a year-on-year basis in August.
Prices for imported capital goods fell 0.2% in August. Imported motor vehicle prices dipped 0.1%. The cost of imported consumer goods excluding motor vehicles rebounded 0.1%.
Prices of goods imported from China rose 0.1%, the first increase since October 2022. Chinese import
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