July’s U.S. import prices increased by 0.4% month-over-month, becoming the latest economic data point to signal that a revival of inflation could be on the way. Economists had expected import prices to be flat in July after a revised 0.1% drop in June. On a yearly basis, July’s import prices fell by 0.2% compared to a 0.5% drop a month ago.
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Higher import prices suggest that exporters to the U.S. are not adjusting their prices lower in order to offset higher consumer prices from President Trump’s tariff policies.
PPI and Core CPI Issue Inflation Warning
On Thursday, the market received a shock after July’s Producer Price Index (PPI) increased by 0.9% month-over-month, the largest increase since June 2022. Core PPI, which excludes volatile food and energy prices, notched a monthly gain of 0.9% as well.
July’s core Consumer Price Index (CPI) also provided an alarming signal, rising by 3.1% year-over-year, registering the highest rate since February. Economists were expecting an increase of 3.0%.
Track U.S. import prices and other key events with TipRanks’ Economic Calendar.
