US import prices climbed 1.9% in May 2026, matching April's upwardly revised pace and delivering the largest year-on-year gain in close to four years, as energy costs tied to Middle East conflict continued to feed through the economy.

Key Highlights

  • Import prices rose 1.9% month-on-month in May, above market expectations of a 1% increase.
  • Year-on-year, import prices jumped 6.7%, the largest annual increase since August 2022.
  • Fuel import prices surged roughly 13% in May, with petroleum up 48% and natural gas up 35% year-on-year.
  • Nonfuel import prices rose 0.8% on the month, up 3.7% annually, the largest year-on-year increase since August 2022.

US import prices rose 1.9% in May from April, according to official government data released June 16, 2026, matching the revised increase recorded the prior month. The reading came in well above market forecasts of a 1% gain, with year-on-year import price inflation reaching 6.7%, the largest such increase in close to four years.

Fuel costs drove the headline figure sharply higher. Prices for fuels and lubricants climbed roughly 13% in May following a 19% increase in April, with petroleum prices up 48% year-on-year and natural gas prices up 35%. Fuel import prices have risen approximately 45% from a year earlier, reflecting the sustained impact of Middle East conflict on global energy supply chains.

Nonfuel import prices also continued to rise, increasing 0.8% on the month and 3.7% year-on-year, the steepest annual gain in that category since August 2022. Capital goods, industrial supplies, consumer goods, and automotive products all contributed. Plastic raw material import prices rose 6.5% in May alone, one of the largest monthly increases on record for that category, as energy cost pressures transmitted through petrochemical supply chains into broader manufacturing inputs.

Import prices for computer equipment and international air transport were also notable contributors to the monthly increase. Air passenger ticket prices, closely tracked as a component of the Federal Reserve's preferred inflation gauge, rose meaningfully in the month, adding to the breadth of inflationary pressure.

Annual consumer price inflation reached 4.2% last month, the highest in three years, with energy accounting for roughly 60% of the monthly increase. Core inflation, which strips out food and energy, held at 0.2% on a monthly basis and 2.9% annually, offering some evidence that energy cost increases have not yet fully transmitted into broader goods and services pricing.

Market participants expect the Federal Reserve to hold rates unchanged at its meeting this week, though the persistently elevated import price data has prompted some traders to price in the possibility of rate increases later this year. A preliminary US-Iran peace agreement is expected to ease energy supply pressure, but economists note supply chain transmission lags mean goods and services prices in some categories may continue rising in the months ahead.