US import prices see fastest rise in 2 years

US import prices continued to rise in December, posting the fastest annual increase in two years. The data signals growing external inflationary pressures on the world’s largest economy.

The Bureau of Labor Statistics reported today, Jan. 16, that the import price index rose 2.2% over the 12 months through December. This marks the sharpest annual gain since the 3.2% increase recorded in December 2022.

On a monthly basis, the index inched up 0.1% for a third consecutive month. No monthly gain has exceeded this level since April.

December’s increase was driven by higher prices for both petroleum and non-petroleum imports. Fuel import prices advanced 1.4%, the largest monthly rise since April’s 3.9% gain.

Excluding fuel, import prices rose 0.1% for the second straight month. Higher prices for food, feed, and beverages outweighed declines in nonfuel industrial inputs, raw materials, capital goods, and vehicles.