Import prices post surprise gain as costs of goods from China hit highest since 2008
US import prices rose unexpectedly in June, driven by higher costs for Chinese goods and AI-related hardware like semiconductors. This suggests that inflationary pressures are broadening beyond the energy sector.
Why it matters
Rising import costs complicate the Federal Reserve's efforts to manage inflation and interest rate policies.
The cost of goods brought into the U.S. posted an unexpected increase in June as the price of goods from China rose by their largest monthly level in more than 18 years, the Bureau of Labor Statistics reported Friday.
Import prices were up 0.3% for the month, as a drop in energy was more than offset by increases elsewhere. On an annual basis, prices jumped 7.1%, the biggest move higher since August 2022. Economists surveyed by Dow Jones had been looking for a decline of 0.8% in June.
The report indicated that the artificial intelligence build-out could be hitting prices, as costs rose for computers, peripherals and semiconductors.
Beyond those areas, the BLS said industrial and service machinery drove costs higher, offsetting a 0.4% decrease in fuels and lubricants. The group posted a 12.6% jump in May.
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