US import prices increase more than expected in September
TLT•US import prices rose 1.1% in September, above economists’ 0.8% forecast, and were up 8.1% from a year earlier—the largest annual increase since July 2022. Financial markets still expected the Federal Reserve to hold rates later this month and tighten policy in December.
1. Import prices climb
Import prices increased 1.1% in September after a downwardly revised 0.5% rebound in August. Economists had forecast a 0.8% increase. The figures exclude tariffs.
2. Annual increase accelerates
In the 12 months through September, import prices rose 8.1%, the largest increase since July 2022, after rising 6.7% in August. Higher energy costs and a range of other goods contributed to the monthly increase.
3. Markets weigh Fed policy
The report followed strong increases in consumer and producer prices this week, which left economists convinced inflation was broadening beyond energy. The article said supply-chain disruption from the US-Israeli war with Iran was keeping oil prices elevated. Financial markets still expected the Fed to skip a rate increase later this month and tighten policy in December; the Fed raised its benchmark rate by 25 basis points in September to a range of 3.75%-4.00%.
