U.S. import prices increased by 1.3 percent in February, marking the largest increase since March 2022, according to the latest official data released by the Department of Labor on Wednesday.
The surge far exceeded economists' forecasts of a 0.5 percent rise and signals mounting upward pressure on inflation in the coming months.
Excluding petroleum, import costs increased by 1.2 percent in February, the strongest rise since January 2022, driven mainly by rising prices for consumer goods excluding automobiles. The data suggest that inflationary pressures were already evident before the recent flare-up in U.S.-Israel tensions with Iran.
Since late February, global oil prices have climbed more than 30 percent, directly impacting domestic fuel costs in the United States. As a result, average gasoline prices have surged, further squeezing household budgets and raising operational costs for businesses.
The price index for U.S. exports rose 1.5 percent in February, the largest monthly advance since the index increased by 2.7 percent in May 2022.
Prices for U.S. exports also increased over the 12-month period that ended in February, rising 3.5 percent.
Market analysts generally expect the Federal Reserve to maintain higher interest rates for an extended period to avoid a second round of inflation. Some estimate that the Fed may delay rate cuts until after September, aiming to prevent inflation expectations from spiraling out of control in an uncertain geopolitical landscape.
US import prices surge to four-year high in February: authorities
