US import prices rebound in July on higher consumer goods costs

U.S. import prices rebounded in July, boosted by higher costs for consumer goods, the latest indication that inflation was poised to pick up because of tariffs.

Import prices increased 0.4% last month after a downwardly revised 0.1% dip in June, the Labor Department's Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast import prices, which exclude tariffs, unchanged after a previously reported 0.1% gain in June.

Though import prices do not include tariffs, the elevated readings suggested exporting nations are not cutting prices to offset the impact of higher costs from duties on consumers.

In the 12 months through July, import prices slipped 0.2% after falling 0.5% in June.

Producer price data on Thursday showed a surge in goods prices excluding the volatile food and energy components, bolstering economists expectations that consumer inflation would accelerate in the months ahead, despite what has so far been a moderate tariff pass-through.

Imported fuel prices increased 2.7% in July after rising 0.8% in June. Food prices decreased 0.1% after dropping 1.3% in the prior month. Excluding fuels and food, import prices advanced 0.3%. Core import prices eased 0.1% in June. In the 12 months through July, they increased 0.8%.

That partly reflects dollar weakness against the currencies of the United States' main trade partners. The trade-weighted dollar is down about 6.7% this year.

Prices for imported consumer goods excluding motor vehicles increased 0.4% last month after edging up 0.1% in June. Imported capital goods prices gained 0.1% while those for motor vehicles, parts and engines decreased 0.2%.