US import prices rose 1.1% in September, exceeding economists' 0.8% forecast and following a downwardly revised 0.5% increase in August. Import prices, which exclude tariffs, climbed 8.1% from a year earlier, the largest annual gain since July 2022, as higher energy costs and increases across other goods added to evidence that inflation was extending beyond fuel. Imported fuel prices rebounded 4.8%, while core import prices, excluding food and fuels, rose 0.7% for a second month and increased 6.2% year over year. Prices also rose for capital goods, consumer goods, vehicles and imports from major trading partners, including China. The report followed strong consumer- and producer-price readings and came as the US-Israeli war with Iran disrupted supply chains and supported oil prices. Financial markets nevertheless expected the Federal Reserve to leave rates unchanged later in October and tighten policy in December, after raising its benchmark rate by 25 basis points to a 3.75%-4.00% range in September.