EconoIndicators / Import Export Price Indexes

Import Export Prices At a Glance

Import Prices: Unchanged
Non-petroleum Import Prices: Up 0.3%
Export Prices: Up 0.4%
Non-agricultural Export Prices: Up 0.3%
Agricultural Export Prices: Up 2.7%
Yearly Import Price Change: Up 10.9%
Yearly Export Price Change: Up 6.0%

Technorati Tags: export, import, price, index, inflation, international trade

U.S. IMPORT AND EXPORT PRICE INDEXES
- DECEMBER 2007 -

The U.S. Import Price Index was unchanged in December, the Bureau
of Labor Statistics of the U.S. Department of Labor reported today. A 0.3
percent increase in nonpetroleum prices was offset by a 0.6 percent decline in
the price index for petroleum. U.S. export prices advanced 0.4 percent in
December following a 0.9 percent rise in November.

-Due to budget constraints, beginning with the January 2008 release
scheduled to be published on February 15, the price series for export
postsecondary education services, export travel and tourism services,
inbound ocean liner freight, and inbound tanker freight will no longer
be published.

Percent changes in import and export price indexes
by End Use category
-not seasonally adjusted-

IMPORTS EXPORTS

Month Non- Agri- Nonagri-
All Petroleum petroleum All cultural cultural
Imports Imports Imports Exports Exports Exports

2006
December 1.1 4.0 0.5 0.6 2.4 0.5

2007
January -1.2 -6.6 -0.1 0.4 0.6 0.5
February 0.4 1.7 0.0 0.8 2.8 0.6
March 1.6 8.5 0.3 0.7 2.1 0.6
April 1.4 6.8 0.3 0.4 -1.4 0.5
May 0.9 2.7 0.6 0.3 -0.1 0.4
June 1.2 4.8 0.3 0.4 2.7 0.2
July 1.2 6.0 0.1 0.1 1.6 -0.1
August -0.3 -1.5 0.0 0.2 1.0 0.1
September 0.6 3.1 r -0.1 0.3 4.2 0.0
October 1.4 5.0 r 0.6 r 0.8 3.8 0.5
November 3.3 r 12.7 r 0.7 0.9 1.4 0.9 r
December 0.0 -0.6 0.3 0.4 2.7 0.3

December 2005-06 2.5 5.3 1.9 4.5 13.5 3.7
December 2006-07 10.9 50.1 2.9 6.0 23.5 4.5

r = revised to reflect late reports and corrections by respondents.

Import Goods

Prior to recording no change in December, the price index for overall
imports rose in each of the past three months including a 3.3 percent jump in
November. Import prices rose 10.9 percent over 2007, the sixth consecutive
year the index increased and the largest calendar-year advance since the index
was first published in September 1982. The 2007 increase was driven by a
sharp rise in petroleum prices and paralleled a drop in the value of the dollar.

Petroleum prices decreased 0.6 percent in December, recording the first
monthly decline since August. Despite the December drop, petroleum prices
led the overall increase in import prices over the past year, rising 50.1 percent
over that period. The increase was the largest yearly advance since a 56.9
percent rise in 2002.

Nonpetroleum prices advanced 0.3 percent in December following
increases of 0.7 percent in November and 0.6 percent in October. Prices for
nonpetroleum imports rose 2.9 percent for the year after increasing 1.9 percent
in 2006. The index rose for the sixth consecutive year and the 2007 increase
was the largest since a 3.7 percent advance in 2004.

The December increase in nonpetroleum prices was primarily led by a
0.7 percent increase in the price index for nonpetroleum industrial supplies and
materials. That increase followed advances of 2.6 percent in November and
1.5 percent in October and was driven by higher prices for chemicals and
natural gas. Nonpetroleum industrial supplies and materials prices rose 6.9
percent over the past year.

The price indexes for consumer goods, automotive vehicles, and foods,
feeds, and beverages all increased in December as well. Consumer goods
prices and prices for automotive vehicles each rose 0.2 percent for the month
and 1.6 percent over the past year. Prices for foods, feeds, and beverages
advanced 0.6 percent in December and 9.3 percent over 2007.

Capital goods prices were unchanged in December as a decline in
computer prices offset a 0.3 percent increase in prices of capital goods
excluding computers. Overall, capital goods prices rose 0.8 percent over the
past 12 months.

Export Goods

Higher prices for both agricultural exports and nonagricultural exports
each contributed to the 0.4 percent increase in export prices. Overall, export
prices rose 6.0 percent over 2007 compared to smaller increases of 2.8 percent
over 2005 and 4.5 percent over 2006. The 2007 advance was the sixth
consecutive annual rise and the largest calendar-year increase since a 6.2
percent advance in 1988.

Higher agricultural prices continued to factor into the overall increase
in export prices, rising 2.7 percent in December after increases of 1.4 percent,
3.8 percent, and 4.2 percent, respectively in November, October, and
September. The December advance was led by a 14.7 percent jump in wheat
prices, although higher prices for soybeans and corn also contributed to the
increase. The price index for agricultural exports rose 23.5 percent over 2007
after a 13.5 percent advance the previous year. The 2007 increase was the
largest calendar-year advance since the index was first published in March
1985.

Nonagricultural prices also increased in December, rising 0.3 percent
following a 0.9 percent advance in November. The index rose 4.5 percent over
2007 after a 3.7 percent increase over 2006. A 0.3 percent increase in the price
index for nonagricultural industrial supplies and materials was the main
contributor to the December advance. Higher prices for chemicals and gold
more than offset lower fuel prices. Nonagricultural industrial supplies and
materials prices rose 10.5 percent over the past 12 months.

Prices for each of the major finished goods areas also increased in
December. Capital goods prices and prices for automotive vehicles each
advanced 0.2 percent for the month. For the December 2006-2007 period,
capital goods prices rose 1.7 percent while the price index for automotive
vehicles increased 1.1 percent. Consumer goods prices ticked up 0.1 percent
for the month and 2.9 percent for the year ended in December.

Summary of December-to-December Percent Changes

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
All Commodity Imports -6.4 7.0 3.2 -9.1 4.2 2.4 6.7 8.0 2.5 10.9
Excluding Petroleum -3.3 0.0 1.3 -4.5 0.3 1.2 3.7 2.4 1.9 2.9
Petroleum -40.8 137.2 17.6 -39.5 56.9 12.8 30.3 42.4 5.3 50.1
All Commodity Exports -3.4 0.5 1.1 -2.5 1.0 2.2 4.0 2.8 4.5 6.0
Excluding Agricultural -2.7 1.2 0.9 -2.5 0.4 1.3 5.0 2.6 3.7 4.5
Agricultural -9.3 -6.8 3.1 -1.8 8.0 13.4 -5.9 4.9 13.5 23.5

Imports by Locality of Origin

The price indexes of imports from China and from Japan increased in December,
advancing 0.1 percent and 0.3 percent, respectively. After declining 1.2 percent in 2006, the
price index of imports from China rose 2.4 percent in 2007. Similarly, the price index of
imports from Japan edged up 0.1 percent over 2007 after falling 1.2 percent over 2006. The
annual increase in prices from China is the largest 12-month rise since the index was first
published in December 2003. Import prices from Japan posted a calendar-year increase for the
first time since 2004.

Import prices from Canada and the European Union also increased in December, each
rising 0.6 percent for the month after advancing 5.9 percent and 0.6 percent, respectively in
November. The recent increases continued upward trends over the past year, as prices of
imports from Canada rose 12.8 percent for the December 2006-2007 period, while import
prices from the European Union increased 3.7 percent. Each was impacted over the year both
by higher fuel prices as well as a drop in the value of the dollar.

Prices of imports from Mexico rose 0.7 percent in December and 15.9 percent in
2007. Rising petroleum prices were the largest factor for the increase in import prices from
Mexico over the past year.

Import and Export Services

Import air passenger fares rose 5.5 percent in December after declining in each of the three
previous months. In December the increase was led by a 16.0 percent jump in Asian fares.
Overall, in 2007, import air passenger fares increased 8.0 percent. Export air passenger fares
also reversed a recent downturn in December, rising 2.6 percent. The index rose 13.4 percent
over the past year.

Prices for import air freight increased 2.7 percent in December following a 2.3
percent advance the previous month. Higher air freight prices from both Europe and Asia, up
3.9 percent and 2.4 percent, respectively, contributed to the increase. Overall import air freight
prices rose 8.4 percent for the year ended in December. The price index for export air freight
rose 1.2 percent in December and 5.1 percent over the past 12 months.

The price index for export travel and tourism, which is lagged one month, decreased
1.5 percent in November after a 1.1 percent advance in October.