US import prices inched higher by 0.1% in April 2025 from the previous month, rebounding from a revised 0.4% decline in March and defying market expectations for a 0.4% drop.
US import prices unexpectedly rise
The unexpected uptick came despite the imposition of baseline 10% tariffs on a broad range of imports at the start of the month, which many analysts had anticipated would force foreign suppliers to cut prices in order to maintain competitiveness in the US market. Instead, the modest increase suggests that pricing pressures remain sticky in certain segments, and that some firms may be passing on at least part of the additional costs to consumers and businesses.
On an annual basis, import prices were also up 0.1%, marking the first positive year-over-year reading in several months, a sign that global price pressures may be stabilizing after a prolonged period of disinflation. Notably, non-fuel import prices rose by 0.4%, the largest monthly gain in a year, compared to a 0.1% decline in March. The rise was driven by sharp increases across several categories, including capital goods, nonfuel industrial supplies and materials, consumer goods, and automotive vehicles, reflecting resilient demand for durable goods and key manufacturing inputs despite lingering trade uncertainties and higher borrowing costs.
Fuel import prices decrise again
In contrast, fuel import prices declined for a second straight month, falling by 2.6% following a 3.4% drop in March, as global energy markets remained under pressure from oversupply concerns and slowing demand growth, particularly in China and Europe. The continued decline in fuel costs helped partially offset the broader increase in non-fuel imports, keeping overall import price inflation relatively muted.
The data add to the complex picture facing the Federal Reserve, which is balancing signs of softening domestic demand and labor markets against these pockets of persistent price pressures in certain goods categories. Combined with other weak economic indicators released this week, the report is likely to reinforce market expectations that the Fed will remain on track to cut interest rates later this year, despite headline inflation remaining above target.
