The US import price index for August, released on the 16th by the Bureau of Labor Statistics, rose 0.7% from the previous month, exceeding the 0.4% increase forecast by economists in a Reuters poll. The rise was driven by firm increases in the costs of capital goods and consumer goods, suggesting inflation could climb further in the coming months. Import prices rebounded after falling 0.3% for two consecutive months. In August, prices rose 7.0% year on year, the largest gain since August 2022, accelerating from a 6.1% rise in July. Prices of imported capital goods rose 0.9%, while prices of non-electrical machinery rose 1.2%, increasing for a second straight month. A boom in spending on artificial intelligence is pushing up prices of imported capital goods. Prices of imported consumer goods excluding automobiles rose 0.5% after falling for two consecutive months, while prices of imported cars, parts, and engines were flat. Imported fuel prices fell 0.1%, declining for a third straight month, while imported food prices rose 0.1%. Core import prices, which exclude food and energy, rose 0.8%, strengthening from a 0.3% rise in July, and were up 5.6% year on year in August. Tariffs are excluded from the import price index.
