Import prices rose unexpectedly in June, climbing 0.3% for the month as increases in goods prices more than offset a decline in energy costs.
On an annual basis, import prices jumped 7.1%, marking the biggest year-over-year increase since August 2022, according to the Bureau of Labor Statistics.
Economists surveyed by Dow Jones had forecast a decline of 0.8% for June, making the actual result a significant miss relative to market expectations.
Goods imported from China saw prices rise 0.9% for the month, the largest single-month gain since January 2008, a likely reflection of ongoing tariff impacts on trade flows.
The 12-month increase for Chinese import prices was 1.3%, the largest yearly gain since the period spanning November 2021 to November 2022.
The BLS report suggested the artificial intelligence build-out may be contributing to price pressures, with costs rising for computers, peripherals, and semiconductors.
Industrial and service machinery also drove costs higher, offsetting a 0.4% decrease in fuels and lubricants, after that category posted a 12.6% jump in May.
Export prices broadly decreased 0.6% in June, the first monthly drop since May 2025, though they rose 10.2% on an annual basis.
Earlier this week, the BLS reported that both consumer and wholesale prices declined, largely due to sliding energy costs as tensions between the U.S. and Iran briefly softened.
Consumer prices were still up 3.5% from a year ago and wholesale costs rose 5.5% annually, even as both measures declined in June.
Federal Reserve Chairman Kevin Warsh said in congressional hearings this week that softer June inflation reports should not be viewed as a sign the central bank’s work on inflation is finished.
Dallas Fed President Lorie Logan said she believes benchmark interest rates should be “modestly higher” to address the ongoing inflation problem facing the U.S. economy.
Cleveland Fed President Beth Hammack echoed that view on Friday, also suggesting monetary policy needs to move tighter given current inflation dynamics.
“For the first time in my tenure, I’m hearing from businesses who say they think we need to take action to curb inflation, and from consumers who can’t make ends meet about a growing sense of despair,” Hammack said in a LinkedIn post.
The June import price data reinforces a broader picture where falling oil prices have provided temporary relief, but inflation pressures continue to broaden across multiple categories of goods.
