WASHINGTON - U.S. import prices increased more than expected in August as the cost of energy products surged, but underlying imported price pressures remained subdued, which bodes well forWatch onWASHINGTON -U.S. import prices increased more than expected in August as the cost of energy products surged, but underlying imported price pressures remained subdued, which bodes well for the overall domestic inflation outlook.
In the 12 months through August, import prices dropped 3.0% after decreasing 4.6% in July. Annual import prices have now declined for seven straight months. A jump in gasoline prices, however, boosted overall consumer and producer prices. The U.S. central bank is expected to leave interest rates unchanged next Wednesday. Since March 2022, the central bank has raised its benchmark overnight interest rate by 525 basis points to the current 5.25%-5.50% range.
Prices of goods imported from China rose 0.1%, the first increase since October 2022. Chinese import prices were down 2.2% on a year-on-year basis in August.