US import prices rose 0.3% in June, the Bureau of Labor Statistics said Friday, defying economist forecasts for a 0.8% decline. Prices for goods imported from China climbed 0.9% during the month, the sharpest monthly increase since January 2008.
The increase pushed the annual import price gain to 7.1%, the largest 12-month rise since August 2022, and adds to signs that costs are broadening beyond energy even as fuel prices ease. The China figures stand out because they arrive as tariff policy and artificial intelligence-driven demand for computers and semiconductors both weigh on trade costs, a dynamic that could feed into consumer prices in the coming months.
What the data shows
Economists surveyed by Dow Jones had expected import prices to fall 0.8% in June. Instead, the index rose 0.3%, according to the Bureau of Labor Statistics.
Prices for imports from China rose 0.9% for the month, the largest single-month advance since January 2008, and were up 1.3% over the past 12 months, the biggest annual gain since late 2022, the bureau said.
Other trading partners moved in different directions. Import prices from Canada rose 1.2% in June, while those from Mexico ticked up 0.1%. Japan fell 0.6% and the European Union edged down 0.1%, its first monthly decline since June 2025, the bureau reported.
Fuel drop offset by other categories
Fuel and lubricant import prices fell 0.4% in June, the first monthly decline since January, following a 12.6% surge in May. Lower petroleum prices, down 0.7%, more than offset a 9.2% jump in natural gas import prices, according to the bureau.
Nonfuel import prices rose 0.4% in June, following a 0.7% increase in May. Capital goods import prices rose 0.4%, led by higher prices for computers, peripherals, semiconductors, and industrial and service machinery. Consumer goods import prices excluding automotives rose 0.3%, marking a fifth straight monthly increase, while automotive vehicle, parts, and engine import prices edged down 0.1%.
Export prices post rare monthly drop
US export prices fell 0.6% in June, the first monthly decline since May 2025, as lower nonagricultural export prices outweighed a 0.2% rise in agricultural export prices. Export prices remained up 10.2% over the past 12 months, the bureau said. Prices for goods exported to China fell 0.2% in June but were still 7.4% higher than a year earlier.
Why It Matters
The unexpected rise complicates the inflation picture heading into the second half of the year. Rising costs for computers, semiconductors, and industrial machinery point to the ongoing artificial intelligence infrastructure buildout as a factor pushing up capital goods prices, even as broader inflation gauges released earlier in the week showed cooling pressure from energy costs.
The sharp move in China import prices is notable given the two countries’ trade relationship, though the bureau’s report did not attribute the increase to a specific cause.
The Bureau of Labor Statistics is scheduled to release the July 2026 Import and Export Price Indexes on Tuesday, Aug. 18, at 8:30 a.m. ET.
