Prices for goods imported into the United States increased unexpectedly in June, with the cost of products arriving from China recording its strongest monthly gain in more than 18 years.
The Bureau of Labor Statistics reported that overall import prices rose 0.3% in June after advancing a downwardly revised 1.7% in May. Economists surveyed by Reuters had anticipated a 0.7% decline. The government previously estimated that import prices increased 1.9% in May. These figures measure prices before tariffs and transportation expenses are added.
Compared with June 2025, import prices were 7.1% higher, representing the largest annual increase since August 2022. The 12-month gain accelerated from 6.6% in May, showing that imported inflation remained elevated even as other recent inflation reports pointed toward some easing in domestic price pressures.
Import prices moved in the opposite direction from consumer and producer prices, both of which declined during June. Those decreases were largely connected to falling oil prices after a fragile ceasefire between the United States and Iran briefly reduced concerns about energy supplies. The ceasefire later collapsed, sending oil prices to their highest level in approximately one month.
Prices for imports from China climbed 0.9% in June. That was the largest one-month increase since January 2008, when the index also rose 0.9%. Over the previous 12 months, Chinese import prices increased 1.3%, the strongest annual gain since the period ending in November 2022.
The increase in Chinese goods prices was part of a broader rise in nonfuel imports. Prices excluding fuel advanced 0.4% in June after rising 0.7% in May. Nonfuel import prices were 4.2% higher than a year earlier, the largest annual increase since June 2022.
Imported capital goods became 0.4% more expensive during the month. Higher costs for computers, peripheral equipment, semiconductors, industrial machinery, service machinery, and scientific and medical equipment contributed to the increase. Strong business investment in artificial intelligence and related technology products has continued to support demand for many of those imports.
Prices for imported consumer goods excluding automobiles increased 0.3%, marking the fifth consecutive monthly advance. Apparel, footwear and household goods became more expensive, outweighing price declines involving coins, gemstones, jewelry and collectibles.
The cost of imported automotive vehicles, parts and engines edged down 0.1%. Imported food prices also declined 0.2%, following a 0.3% decrease in May. Lower prices for vegetables and certain prepared animal and vegetable products more than offset increases involving fruit, meat, food oils and oilseeds.
Nonfuel industrial supplies and materials rose 1.2% in June after gaining 1% during the previous month. Higher prices for chemicals and finished nonmetal products, including boxes, belting and glass, exceeded declines in the cost of crude nonferrous metals.
Fuel import prices provided some relief, falling 0.4% after surging 12.6% in May. The June decrease was the first monthly decline in imported fuel costs since January.
Imported petroleum prices fell 0.7% during the month, while natural gas import prices jumped 9.2%. Despite the monthly decrease in overall fuel costs, imported fuels and lubricants remained 44.1% more expensive than they were one year earlier. Petroleum import prices were up 45.4% annually, while imported natural gas prices had increased 92.9%.
The results indicate that inflationary pressure from imported goods has spread beyond energy. Rising costs for technology equipment, consumer products and industrial supplies could eventually affect businesses and households if importers pass those expenses along through higher retail prices.
Source: CNBC
