US import prices post largest gain in nearly four years in February

U.S. import prices increased by the most in nearly four years in February as energy costs surged in anticipation of conflict in the Middle East, adding to signs that inflation is poised to accelerate in the months ahead.

Import prices jumped 1.3% last month, the largest increase since March 2022, after an upwardly revised 0.6% gain in January, the Labor Department's Bureau of Labor Statistics said on Wednesday. Economists polled by Reuters had forecast import prices, which exclude tariffs, increasing 0.5% after a previously reported 0.2% rise in January.

In the 12 months through February, import prices advanced 1.3%. That was the largest year-on-year increase since February 2025, and followed a 0.3% increase in January. 

The government last week reported that producer prices increased by the most in seven months in February, driven by broad increases in services and goods.

A survey from S&P Global on Tuesday showed businesses paid more for inputs in March and asked higher prices for their goods and services, blaming soaring energy costs and supply chain disruptions. The U.S.-Israeli war with Iran has boosted oil prices by more than 30% since the conflict started at the end of February. Fertilizer prices have also increased, which will feed through to higher food inflation.

The strain from the war is on top of import tariffs, which businesses continue to gradually pass on to consumers. 

Imported fuel prices rebounded 3.8% last month after dropping 1.2% in January.