US import prices jumped by the most since 2022

[WASHINGTON] The cost of imports into the US jumped in February by the most in nearly four years, reflecting a broad pickup in prices even before war in the Middle East.

Import prices increased 1.3 per cent from the prior month, Labor Department data showed on Wednesday (Mar 25), boosted in part by higher prices for petroleum and natural gas.

Excluding petroleum, import costs advanced 1.2 per cent, the most since January 2022 and driven by higher prices for capital goods and consumer merchandise excluding automobiles.

Export prices also surged, rising 1.5 per cent in February, the most since May 2022.

The acceleration in import prices underscores a growing risk of a resurgence in inflation as companies face higher energy costs tied the Iran war. US importers are also contending with higher import duties set in place by the Trump administration. Tariffs are not included in the government’s import price data.

Compared with February 2025, the import price index excluding petroleum climbed 2.8 per cent – the most since October 2022 and suggesting the tariff burden is falling primarily on US importers. 

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Meanwhile, the decline in the value of the US dollar since early last year risks eventually making the cost of foreign-made goods more expensive for domestic importers. A cheaper dollar, if sustained, could also underpin demand for US-made goods. BLOOMBERG