U.S. import prices rose the most in nearly four years in February as energy costs jumped in anticipation of conflict in the Middle East, according to the Labor Department’s Bureau of Labor Statistics’ latest report.
In the 12 months through February, import prices rose 1.3%, marking the largest monthly increase since March 2022. This follows a 0.3% rise in January.
Imported fuel prices rebounded 3.8% last month after dropping 1.2% in January.
The report indicates that inflation is likely to speed up in the coming months. The pressure from the war adds to import tariffs, which businesses are gradually passing on to consumers.
A survey from S&P Global on Tuesday showed that businesses paid more for inputs in March and increased the prices for their goods and services, citing soaring energy costs and supply chain disruptions.
The U.S.-Israeli conflict with Iran has driven oil prices up by more than 30% since late February. Fertilizer costs have also increased, which will contribute to higher food inflation.
By CEO NA Editorial Staff
