U.S. import prices surged in August amid solid increases in the costs of capital and consumer goods, suggesting inflation could rise further in the coming months.

Import prices rebounded 0.7% last month after declining by 0.3% for two straight months, the Labor Department's Bureau of Labor Statistics said on Wednesday. Economists polled by Reuters had forecast import prices, which exclude tariffs, would rise 0.4%. 

In the 12 months through August, import prices soared 7.0%, the largest increase since August 2022, after advancing 6.1% in July. The government last week reported accelerations in consumer and producer prices in August. 

Shipping containers sit on a Maersk vessel docked at the port of Los Angeles in Long Beach, California, March 10, 2026. REUTERS/Caroline Brehman

Higher inflation because of the oil price shock stemming from the U.S.-Israeli war with Iran, and larger-than-expected nonfarm payroll gains in August are expected to push the Federal Reserve to raise interest rates later on Wednesday.

Imported capital goods prices increased 0.9% last month after rising 1.0% in July. Prices for nonelectrical machinery gained 1.2% for the second straight month in August. An artificial intelligence spending boom is driving up prices for imported capital goods. 

Prices for imported consumer goods, excluding automotives, rebounded 0.5% after two straight monthly decreases. The cost of imported automotive vehicles, parts and engines was unchanged.

Prices of imported fuel slipped 0.1%, declining for a third straight month. Imported food prices edged up 0.1%. Excluding food and fuels, import prices jumped 0.8% after rising 0.3% in July. The so-called core imported inflation increased 5.6% in the 12 months through August.