Import prices rose 0.3% in June as costs of goods from China increased to their highest monthly level in 18 years, the Bureau of Labor Statistics reported. The rise was largely driven by AI build‑out, higher computer, peripheral and semiconductor costs, and a 12.6% jump in industrial and service machinery.

On an annual basis, import prices surged 7.1%, the biggest gain since August 2022, while China‑origin imports climbed 0.9%—the largest monthly move since January 2008. Export prices to China fell 0.2% in June, but rose 7.4% annually.

Fed officials noted that although energy costs fell, inflation is broadening beyond oil. Fed Chair Kevin Warsh said softer June data does not signal the end of the fight, and Dallas Fed President Lorie Logan urged modest rate increases to curb inflation.

The report highlights businesses’ rising costs, consumer pressure, and the Fed’s continued focus on bringing inflation back to the 2% goal.