U.S. Import Prices Unexpectedly Flat in September

United States (U.S.) core import prices were unexpectedly unchanged in September as high costs for consumer goods, excluding motor vehicles, were offset by cheaper energy products. The report was delayed by a record 43-day shutdown of the government.
According to the Labour Department's Bureau of Labour Statistics on Wednesday, December 3, 2025, in the 12 months through September, import prices increased 0.3%, marking the first year-on-year rise since March and followed a 0.1% dip in August. Economists polled by Reuters had forecast import prices, which exclude tariffs, rising 0.1% after a previously reported 0.3% advance in August.
Of note, imported fuel prices dropped 1.5% in September after easing 0.5% in August. Natural gas prices declined 3.0% and food prices decreased 0.8%. Core import prices, which exclude fuels and food, rose 0.3%, the same margin as in August. In the 12 months through September, they advanced 0.8%. This partly reflects dollar weakness against the currencies of the main U.S. trade partners. The trade-weighted dollar is down about 5.6% this year.
The pass-through from tariffs to consumer prices has so far been modest, with economists saying businesses were opting to absorb the duties. Economists, however, continue to expect an acceleration in the pass-through pace, arguing that a continued decline in margins at businesses was unsustainable and could hamper spending on capital and labour. Meanwhile, the government last week reported a surge in producer prices for goods in September, mostly driven by higher food and energy costs.
Federal Reserve officials are scheduled to meet next week to discuss interest rates, where still high inflation, coupled with the need to ease labour pressures, has created market uncertainty. Of the 12 voting policymakers on the Federal Open Market Committee, the central bank's rate-setting panel, as many as five have expressed opposition or scepticism about further rate cuts. Meanwhile, a core group of three members from the Washington-based Board of Governors is advocating for a decrease in rates.

(Source: Reuters)