US import prices jumped by the largest level in 11 years in January amid an increase in the cost of energy products and strained supply chains.
- Import prices rose 2.0% last month, the largest since April 2011, after dropping 0.4% in December. In the 12 months through January, prices rose 10.8% after expanding 10.2% in December.
- Supply chain challenges had indicated signs of slowing down toward the end of 2021, but the trend slowed down due to rising Omicron variant cases.
- Imported fuel prices rose 9.3% last month after falling 8.3% in December. Petroleum prices soared 9.5% as the cost of imported foods expanded 3.6%.
- Import prices, excluding fuel and food, jumped 1.1%. The core import prices rose 0.6% in December, rising 6.2% YOY in January.
The report also indicated export prices rose 2.9% in January after falling 1.6% in December. Prices for agricultural exports increased 3.0%. Nonagricultural export prices surged 2.9%.
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Source: US Bureau of Labor Statistics