US Import Prices Unexpectedly Fall in July

US import prices fell by 0.4% month-over-month in July 2026, following a revised 0.3% decrease in June and contrasting with market forecasts of a 0.1% increase. This marked the largest monthly decline since May 2025. Import fuel prices fell 7.2%, their biggest decline since September 2024, as a 7.5% drop in petroleum and petroleum product prices more than offset a 5.3% increase in natural gas prices. Meanwhile, nonfuel import prices rose 0.4%, driven by higher prices for capital goods, foods, feeds and beverages, and automotive vehicles, parts and engines. These increases more than offset declines in nonfuel industrial supplies and materials. The gauge excludes duties, such as tariffs imposed by the US administration, as well as transportation costs. On a yearly basis, US import prices rose by 5.9%.

Prices of goods imported into the US rose by 0.3% from the previous month in June of 2026, slowing from the revised 1.7% in May but contrasting sharply with market expectations of a 0.7% decline. Imports of fuel and lubricants fell by 0.4% as the momentary pickup in tanker volumes leaving the Persian Gulf allowed for some relief in wholesale fuel oil and refined fuel costs. The slight drop compared to a 12.6% surge in May and an 18.9% jump in April. In turn, non-fuel import prices rose by 0.4%, extending the 0.7% increase in the previous month to mark a seventh consecutive period of higher prices. The increase in import costs do not include tariffs that have recently been raised by the presidential administration. From the previous month, import prices rose by 7.1%, the highest in nearly four years.

US import prices rose 1.9% from the previous month in May of 2026, extending the upwardly revised 2% increase from the earlier period, which was the fastest rise in four years, and well above market expectations of a 1% increase. Imports of fuel and lubricants surged by 12.5% from the previous month as the war in the Middle East continued to prevent energy exports from Persian Gulf countries, lifting oil and product prices across the globe. Meanwhile, nonfuel import prices rose by 0.8% with increases for capital good, nonfuel industrial supplies and materials, consumer goods excluding automotives, and automotive vehicles, parts, and engines. The gauge excludes tariffs that US importers must pay, which increased since the series of measures passed by the presidential administration, to signal that producers are passing on price hikes to consumers. Import prices surged by 6.7% from the previous year, the most in over three years.