US import prices unexpectedly rise in June

US 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.

This led to the largest annual increase in imported inflation in nearly four years. Import prices increased 0.3 percent last month after a downwardly revised 1.7 percent advance in May, according to the Labor Department.

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Economists polled by Reuters had forecast import prices, which exclude tariffs, decreasing 0.7 percent after a previously reported 1.9 percent rise in May.

In the 12 months through June, import prices surged 7.1 percent. That was the biggest advance since August 2022 and followed a 6.6 percent 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 US and Iran took hold.

That truce collapsed last week, pushing oil prices to a one-month high. Prices of imported fuel fell 0.4 percent last month after rising 12.6 percent in May. They jumped 44.1 percent year-on-year in June.

Imported food prices eased 0.2 percent. Excluding food and fuels, import prices increased 0.4 percent after advancing 0.8 percent. The so-called core imported inflation increased 4.6 percent in the 12 months through June.

Core imported inflation was boosted by a 0.4 percent 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 percent. The cost of imported automotive vehicles, parts and engines eased 0.1 percent.