FX.co ★ US Import Prices Rise More than Expected

US import prices rose 1.1% from the previous month, the largest increase in four months and well above market expectations of a 0.8% gain, following a 0.7% rise in the prior month. The advance was broad-based: non-fuel import prices climbed 0.7%, after a revised 0.6% increase previously. Notably, the rise occurred despite recently imposed tariffs by the presidential administration, suggesting firms are not cutting prices to offset higher duties. Fuel import prices jumped 4.8%, also the steepest monthly gain in four months, as a tighter blockade of tankers by Iran and the US exit from the Persian Gulf pushed global oil and refined product prices sharply higher. On a year-on-year basis, overall import prices were up 8.1%.