U.S. Import Prices Rise Solidly in February

U.S. import prices unexpectedly increased in February, driven by higher consumer goods costs, raising concerns about inflation.

The recent wave of tariffs has fueled concerns over inflation and potential job losses.

Import prices rose 0.4% last month, matching January’s upwardly revised gain, the Labor Department’s Bureau of Labor Statistics reported, Reuters journalist Lucia Mutikani wrote.

Economists polled by Reuters had forecast import prices—excluding tariffs—to decline by 0.1% after a previously reported 0.3% rise in January. On a year-over-year basis, import prices climbed 2.0% in February, following a 1.8% increase in January.

Government data released last week showed better-than-expected consumer and producer price readings for February.

However, firmer underlying details in the report contributed to the calculation of the Personal Consumption Expenditures (PCE) price indices—the inflation measures closely monitored by the Federal Reserve in its effort to maintain a 2% target.

Federal Reserve officials are expected to leave the benchmark overnight interest rate in the 4.25%-4.50% range, having reduced it by 100 basis points since September.

Policymakers continue to assess the economic impact of President Donald Trump’s policies. His recent wave of tariffs has fueled concerns over inflation and potential job losses.

Financial markets anticipate the Fed will resume cutting borrowing costs in June, following a pause in January. The central bank had previously raised interest rates by 5.25 percentage points in 2022 and 2023.

In February, imported fuel prices rose 1.7%, following a 3.5% surge in January. Food prices remained unchanged after a 0.2% increase in January. Excluding fuel and food, import prices climbed 0.4% after holding steady the previous month.