US Import Prices Surge on Strength in Capital Goods

US import prices saw a significant surge in August, rising by 0.7% after two consecutive monthly declines of 0.3%, according to the Labor Department's Bureau of Labor Statistics.

This increase suggests that inflation may continue to rise over the coming months, and economists polled by Reuters had forecasted a 0.4% rise in import prices.

Over the past year, import prices have skyrocketed by 7.0%, marking the largest increase since August 2022 after advancing 6.1% in July.

The government's recent report of accelerated consumer and producer price increases in August, coupled with a larger-than-expected nonfarm payroll gain, is expected to prompt the Federal Reserve to raise interest rates later on Wednesday.