U.S. Import Prices Rebound in July on Higher Consumer Goods Costs

U.S. import prices rebounded in July, lifted by higher costs for consumer goods—another sign that inflation may pick up amid new tariffs, Lucia Mutikani reported for Reuters.

Imported fuel prices jumped 2.7% in July after a 0.8% increase in June. Food prices fell 0.1% after a 1.3% drop the month before.

Import prices rose 0.4% last month after a downwardly revised 0.1% dip in June, the Labor Department’s Bureau of Labor Statistics said.

Economists polled by Reuters had forecast no change after June’s previously reported 0.1% gain. Though import prices exclude tariffs, the elevated readings suggest exporting nations are not cutting prices to offset rising costs from duties.

For the 12 months through July, import prices slipped 0.2% after a 0.5% decline in June.

Latest producer price data showed a surge in goods prices excluding volatile food and energy, strengthening economists’ expectations that consumer inflation will accelerate in the months ahead, despite what has so far been a moderate tariff pass-through.

Imported fuel prices jumped 2.7% in July after a 0.8% increase in June. Food prices fell 0.1% after a 1.3% drop the month before.

Excluding fuels and food, import prices rose 0.3% in July after easing 0.1% in June.

Over the past year, core import prices increased 0.8%, partly reflecting dollar weakness against the currencies of the U.S.’s major trade partners. The trade-weighted dollar is down about 6.7% this year.