WASHINGTON (Reuters) – U.S. import prices increased slightly less than expected in January as a surge in the cost of fuels was partially offset by decreases in the prices of motor vehicles and consumer goods, offering some hope in the fight against inflation.

Import prices rose 0.3% last month after an upwardly revised 0.2% gain in December, the Labor Department’s Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast import prices, which exclude tariffs, advancing 0.4% following a previously reported 0.1% rise in December.

In the 12 months through January, import prices increased 1.9% after climbing 2.3% in December.

Government data this week showed firmer-than-expected consumer price and producer inflation readings in January. The data, together with a stable jobs market, led financial markets to push interest rate cut expectations to September from June.

The Federal Reserve paused rate cuts in January while it assesses the economic impact of the policies of President Donald Trump’s administration, including broad tariffs, tax cuts and deportations, widely viewed by economists as inflationary. The central bank started its easing cycle in September.

Imported fuel prices jumped 3.2% in January after rising 1.7% in December. Food prices gained 0.2% after accelerating 3.0% in December.

Excluding fuels and food, import prices were unchanged after easing 0.1% in December and November. In the 12 months through January, core import prices rose 1.2%, reflecting earlier dollar strength against the currencies of the United States’ main trade partners.

Prices of imported capital goods rebounded 0.1% after two straight monthly declines. Imported automotive vehicles, parts and engines prices dropped 0.4%, decreasing for the third consecutive month.

Imported consumer goods, excluding automotives, fell 0.2% after being unchanged in December and November.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)

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