Import Prices Rise 0.3%, China Costs Hit 2008 High

The import data contrasted with the consumer and wholesale price reports earlier this week, which both declined month over month on lower energy costs. The drop in oil came as tensions between the U.S. and Iran briefly eased. Consumer prices were up 3.5% from a year ago; wholesale costs rose 5.5%.

Federal Reserve officials said the softer June inflation readings did not mean the central bank's work was finished. Chair Kevin Warsh told Congress this week he did not view the reports as a signal that inflation was returning to the 2% goal. Dallas Fed President Lorie Logan said Thursday that benchmark interest rates should be "modestly higher" to address the problem. Cleveland Fed President Beth Hammack echoed that view Friday.

The import price data showed inflation pressures broadening beyond energy, even as fuel costs declined. Rising costs from China and from computer and semiconductor inputs tied to AI buildout could keep price pressures elevated.

The PCE price index, the Fed's preferred inflation gauge, is due later this month. The central bank's next rate decision is set for late July.