US import prices increase less than expected in March

U.S. monthly import prices increased less than expected in March, though details still pointed to firming imported inflationary pressures amid the Middle East conflict.

Import prices rose 0.8% last month after a downwardly revised 0.9% gain in February, the Labor Department's Bureau of Labor Statistics said on Wednesday. Economists polled by Reuters had forecast import prices, which exclude tariffs, increasing 2.0% after a previously reported 1.3% rise in February.

In the 12 months through March, import prices shot up 2.1%. That was the largest year-on-year rise since December 2024, and followed a 1.0% increase in February.

Imported fuel prices rose 2.9% last month after advancing 2.4% in February. Oil prices have jumped more than 35% since the U.S.-Israeli war with Iran started at the end of February. Higher oil prices raised consumer and producer prices in March, government data showed recently.

Imported food prices gained 0.5%. Excluding food and energy, import prices increased 0.6% after rising 0.9% in February. There were solid increases in the prices of imported capital goods as well as consumer goods excluding automobiles.

(Reporting by Lucia Mutikani. Editing by Chizu Nomiyama and Mark Potter)