US import prices post largest annual gain in over four years

US import prices rose 1.1% in September, exceeding economist forecasts and marking the largest annual increase since July 2022. The Labor Department reported that the 12-month gain reached 8.1%, driven by higher costs for energy products, capital goods, and consumer items as inflation pressures broaden beyond the energy sector.

The surge in import costs follows strong increases in consumer and producer prices earlier this month. Economists attribute the rising inflation to a combination of persistent Middle East conflict, which has snarled supply chains and kept oil prices elevated, and federal policies including tariffs on imports. A recent poll indicated that 78% of Americans blame current administration policies for the rising cost of living.

Despite the heating inflation data, financial markets still expect the Federal Reserve to hold interest rates steady at its upcoming meeting before potentially tightening policy in December. The central bank raised its benchmark rate to the 3.75%-4.00% range in September, while Fed Chairman Kevin Warsh offered no specific preview on future rate hikes during a speech in Bangkok.

Read the full story at kfgo.com.