US import prices increase, posting largest annual gain in more than four years
SPY•US import prices rose 1.1% in September, above economists’ 0.8% forecast, and increased 8.1% from a year earlier, the largest annual gain in more than four years.
1. Import prices accelerate
Import prices rose 1.1% in September after a revised 0.5% increase in August. Imported fuel prices rebounded 4.8%, while prices excluding food and fuels advanced 0.7%; prices from China rose 0.7%, the most since December 2021.
2. Inflation outlook
The report followed strong consumer and producer price increases for September. Financial markets still expected the Federal Reserve to leave rates unchanged later in October and tighten policy in December. Import air passenger fares surged 12.6%, which could affect economists’ estimates for September core PCE inflation, currently ranging from 0.31% to 0.36%.
