US import prices increase more than expected in May

Published Tue, Jun 16, 2026 · 09:03 PM

In the 12 months through May, US import prices advanced 6.7 per cent. PHOTO: BLOOMBERG

[WASHINGTON] US import prices rose more than expected in May amid strong gains in the prices of fuels and capital goods, leading to the largest annual increase in nearly four years.

Import prices increased 1.9 per cent last month after an upwardly revised 2 per cent jump in April, the Labor Department’s Bureau of Labor Statistics said on Tuesday.

Economists polled by Reuters had forecast import prices, which exclude tariffs, rising 1 per cent after a previously reported 1.9 per cent surge in April.

In the 12 months through May, import prices advanced 6.7 per cent. That reading was the largest year-on-year increase since August 2022 and followed a 4.2 per cent rise in April.

Oil prices have soared amid the US-Israeli war with Iran, fanning inflation.

Washington and Teheran said on Sunday they had agreed terms to end the war and reopen the Strait of Hormuz, though the pact may hinge on an end to hostilities in Lebanon.

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Consumer inflation increased at its fastest pac e in three years in May, while producer prices posted their largest gain in 3-1/2 years, the government reported last week.

Rising inflation and labour market stability have raised the chances of an interest rate increase from the Federal Reserve. Economists, however, viewed the bar as high for policy tightening.

US central bank officials were due to start their two-day policy meeting on Tuesday. They were expected to keep the Fed’s benchmark overnight interest rate in the 3.5 to 3.75 per cent range, but pivot away from an easing bias, economists predicted.