Import prices post surprise gain as costs of goods from China hit highest since 2008

The cost of goods brought into the U.S. posted an unexpected increase in June as the price of goods from China rose by their largest monthly level in more than 18 years, the Bureau of Labor Statistics reported Friday.

Import prices were up 0.3% for the month, as a drop in energy was more than offset by increases elsewhere. On an annual basis, prices jumped 7.7%, the biggest move higher since August 2022. Economists surveyed by Dow Jones had been looking for a decline of 0.8% in June.

The report indicated that the artificial intelligence buildout could be hitting prices, as costs rose for computers, peripherals and semiconductors.

Beyond those areas, the BLS said industrial and service machinery drove costs higher, offsetting a 0.4% decrease in fuels and lubricants. The group posted a 12.6% jump in May.

China also played a role, with import prices rising 0.9%, the biggest monthly move since January 2008, a possible reflection of tariff impacts. The 12-month increase was 1.3%, the largest yearly gain since the period from November 2021 to November 2022. Export prices to China actually fell 0.2% in June, but were up 7.4% annually, the biggest monthly increase dating back to August 2022.

The report broadly showed that while a decline in oil costs helped lower prices in June, inflation is showing signs of broadening beyond energy as businesses face a variety of rising costs.

Earlier this week, the BLS reported that both consumer and wholesale prices declined, largely on the back of sliding energy costs as tensions between the U.S. and Iran briefly softened.

Export prices broadly decreased 0.6%, the first monthly drop since May 2025. However, export prices rose 10.2% annually.