US import prices surge 1.1% in September on energy costs
US import prices rose 1.1% in September, exceeding forecasts, driven by higher energy costs and other goods. Annual increase hit 8.1%, the largest since July 2022, as Middle East conflict strains supply chains. Markets expect Fed to hold rates steady this month.
Import prices in the United States rose more than expected in September, propelled by higher costs for energy products and a range of other goods, the Labor Department's Bureau of Labor Statistics said on Friday. The increase is the latest evidence of rising inflation pressures as the Middle East conflict persists.
Import prices jumped 1.1 per cent last month after rebounding by a downwardly revised 0.5 per cent in August. Economists polled by Reuters had forecast a 0.8 per cent increase, following a previously reported 0.7 per cent advance in August. Import prices exclude tariffs.
In the 12 months through September, import prices rose 8.1 per cent, the largest annual increase since July 2022, accelerating from 6.7 per cent in August. The government this week reported strong increases in both consumer and producer prices, leading economists to conclude that inflation is broadening beyond the energy sector.
The dragging US-Israeli war with Iran has snarled supply chains and kept oil prices elevated, according to the report. Despite inflation heating up in September, financial markets still expect the Federal Reserve to skip raising interest rates later this month and to tighten monetary policy in December instead.
The US central bank in September raised its overnight benchmark interest rate by 25 basis points to the 3.75 per cent–4.00 per cent range.