US import prices rose more than economists expected in September, lifted by energy and a range of other goods. Annual import price growth reached its largest increase since July 2022, while markets still anticipated the Federal Reserve to hold rates this month.
US import prices jumped 1.1% in September after a downwardly revised 0.5% rebound in August, the Labor Department's Bureau of Labor Statistics said on Friday. The gain came from higher costs for energy products and a range of other goods, and the report points to rising inflation pressures as the Middle East conflict persists.
Economists polled by Reuters had forecast an increase of 0.8% in import prices, which exclude tariffs. They had expected that after a previously reported 0.7% advance in August.
In the 12 months through September, import prices rose 8.1%, the largest increase since July 2022. The annual figure had been 6.7% in August.
The government this week reported strong increases in consumer and producer prices, and economists became convinced that inflation was broadening beyond the energy sector. Meanwhile, the war between the US, Israel and Iran has snarled supply chains and keeps oil prices elevated.
Despite inflation heating up in September, financial markets still expected the Federal Reserve to skip raising interest rates later this month and tighten monetary policy in December. The central bank raised its overnight benchmark rate by 25 basis points in September, to the 3.75%-4.00% range.
Source: Economy News
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