U.S. Import Prices Unexpectedly Increase In August

(RTTNews) - A report released by the Labor Department on Tuesday showed import prices in the U.S. unexpectedly increased in the month of August.

The Labor Department said import prices rose by 0.3 percent in August after inching up by a downwardly revised 0.2 percent in July.

Economists had expected import prices to edge down by 0.1 percent compared to the 0.4 percent increase originally reported for the previous month.

Compared to the same month a year ago, import prices were unchanged in August after edging down by 0.2 percent in July.

"The import price data support our expectations for pressure on consumer prices to accelerate in the months ahead," said Grace Zwemmer, Associate U.S. Economist at Oxford Economics.

"Country level import price indexes for major trading partners are on the rise, which could indicate exporters are less inclined to eat tariff costs," she added. "A weaker dollar is likely adding upward pressure by making foreign goods relatively more expensive."

The unexpected monthly growth by import prices came as prices for non-fuel imports climbed by 0.4 percent in August after coming in unchanged in July.

The Labor Department said higher prices for consumer goods, non-fuel industrial supplies and materials, capital goods and automotive vehicles more than offset lower prices for foods, feeds, and beverages.

On the other hand, the report said prices for fuel imports slid by 0.8 percent in August after surging by 2.5 percent in July, reflecting lower prices for natural gas and petroleum.

The Labor Department also said export prices climbed by 0.3 percent in August, matching an upwardly revised increase in July.

Economists had expected export prices to come in unchanged compared to the 0.1 percent uptick originally reported for the previous month.

The annual rate of growth by export prices accelerated to 3.4 percent in August from 2.2 percent in July, marking the largest over-the-year increase since December 2022.

The report said prices for non-agricultural exports rose by 0.3 percent for the second straight month, while prices for agricultural exports were unchanged in August after edging down by 0.2 percent in July.