Import prices in the United States posted a surprise increase in June, with goods from China rising at their steepest monthly rate in over 18 years.
The Bureau of Labor Statistics reported that import prices climbed 0.3% for the month, defying economist expectations of a 0.8% decline surveyed by Dow Jones.
On an annual basis, import prices surged 7.1%, marking the largest year-on-year increase since August 2022, underscoring persistent inflationary pressures across the economy.
A drop in energy costs was more than offset by rising prices elsewhere, with fuels and lubricants falling 0.4% but gains in other categories more than compensating for that decline.
Goods imported from China rose 0.9% in June, the biggest single monthly move since January 2008, widely viewed as a possible reflection of ongoing tariff impacts on trade flows.
The 12-month increase in Chinese import prices reached 1.3%, the largest yearly gain since the period running from November 2021 through November 2022.
The report also pointed to the artificial intelligence build-out as a potential driver of cost pressures, with prices rising for computers, peripherals, and semiconductors during the month.
Industrial and service machinery costs also pushed prices higher, following a significant 12.6% jump in that category recorded in May.
Export prices broadly fell 0.6% in June, the first monthly decline since May 2025, though they remained 10.2% higher on an annual basis, reflecting the complex dynamics of global trade.
Earlier this week, the BLS reported that both consumer and wholesale prices declined in June, largely driven by falling energy costs as tensions between the United States and Iran briefly eased.
Consumer prices nonetheless remained 3.5% above year-ago levels, while wholesale costs were running 5.5% higher despite both measures posting monthly declines.
Fed Chairman Kevin Warsh told congressional hearings this week that softer June inflation data did not signal the central bank had completed its work in returning inflation to the 2% target.
Dallas Fed President Lorie Logan said she believes benchmark interest rates should be “modestly higher” to address the ongoing inflation problem, adding to hawkish signals from policymakers.
Cleveland Fed President Beth Hammack also indicated on Friday that monetary policy needs to be tightened further, sharing her concerns in a public statement posted to LinkedIn.
“For the first time in my tenure, I’m hearing from businesses who say they think we need to take action to curb inflation, and from consumers who can’t make ends meet about a growing sense of despair,” Hammack said in a LinkedIn post.