U.S. import prices rise solidly in June

On January 30, 2019, ships and cargo containers are seen at the port of Long Beach in Long Beach, California, United States. Mike Blake/REUTERS/File Photo (Reuters) – WASHINGTON, July 15 (Reuters) – Import prices in the United States rose sharply in June as bottlenecks in the global supply chain continued, the latest sign that inflation may endure for some time due to robust domestic demand spurred by the economy’s recovery and fiscal stimulus. Nonetheless, prices appeared to have reached a nadir. The Labor Department reported on Thursday that import prices increased by 1.0 percent in June after rising by 1.4 percent in May. With the eighth consecutive monthly gain, the year-over-year increase is at 11.2 percent, up from 11.6 percent in May. Import prices, excluding taxes, were expected to rise 1.2 percent, according to economists polled by Reuters. Consumer prices rose by the most in 13 years in June, according to the government, while producer prices accelerated. find out more COVID- Since the pandemic began in the United States in March 2020, demand has been fueled by 19 immunizations, low interest rates, and roughly $6 trillion in government relief, straining the supply system. “Inflation has substantially increased and will likely continue elevated in the coming months before declining,” Federal Reserve Chair Jerome Powell told lawmakers on Wednesday. After jumping 5.5 percent in May, imported fuel costs rose 4.7 percent last month. Petroleum prices jumped by 4.6 percent, while imported food costs increased by 1.9 percent. Import costs rose 0.6 percent excluding fuel and food. In May, these so-called core import prices increased by 1.1 percent. Export prices rose 1.2 percent in June after climbing 2.2 percent in May, according to the data. Agricultural export prices increased by 1.5 percent. Export prices for non-agricultural goods increased by 1.1 percent. Export prices rose 16.8% year over year in June, following a 17.5 percent increase in May. Lucia Mutikani contributed reporting, and Andrea Ricci edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More