US import prices jump in August on strength in capital, consumer goods

Prices of imported fuel slipped 0.1%, declining for a third straight month. Imported food prices edged up 0.1%.

Excluding food and fuels, import prices jumped 0.8% after rising 0.3% in July. The so-called core imported inflation increased 5.6% in the 12 months through August.

U.S. import prices surged in August amid solid increases in the costs of capital and consumer goods, suggesting inflation could rise further in the coming months.

Import prices rebounded 0.7% last month after declining by 0.3% for two straight months, the Labor Department's Bureau of Labor Statistics said on Wednesday. Economists polled by Reuters had forecast import prices, which exclude tariffs, would rise 0.4%.

In the 12 months through August, import prices soared 7.0%, the largest increase since August 2022, after advancing 6.1% in July. The government last week reported accelerations in consumer and producer prices in August.

Higher inflation because of the oil price shock stemming from the U.S.-Israeli war with Iran, and larger-than-expected nonfarm payroll gains in August are expected to push the Federal Reserve to raise interest rates later on Wednesday.

Imported capital goods prices increased 0.9% last month after rising 1.0% in July. Prices for nonelectrical machinery gained 1.2% for the second straight month in August. An artificial intelligence spending boom is driving up prices for imported capital goods.

Prices for imported consumer goods, excluding automotives, rebounded 0.5% after two straight monthly decreases. The cost of imported automotive vehicles, parts and engines was unchanged.