EconoIndicators

Import Export Prices At a Glance

• Import Prices: Down 3%
• Non-petroleum Import Prices: Down 0.9%
• Export Prices: Down 1%
• Non-agricultural Export Prices: Down 1%
• Agricultural Export Prices: Down 0.3%
• Yearly Import Price Change: Up 14.5%
• Yearly Export Price Change: Up 6.8%

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

U.S. IMPORT AND EXPORT PRICE INDEXES
– SEPTEMBER 2008 -

The U.S. Import Price Index decreased 3.0 percent in September, the Bureau of Labor Statistics
of the U.S. Department of Labor reported today, following a 2.6 percent decline in August. Falling
petroleum prices led the overall decrease, although nonpetroleum prices also declined. Prices for overall
exports decreased 1.0 percent for the month.

Import Goods

Import prices fell 3.0 percent in September, the largest one-month decline since April 2003.
Despite the 5.5 percent drop over August and September, the largest two-month decline since the index
was first published monthly in December 1988; import prices were still up 14.5 percent over the past
year. The September decrease in import prices was led by a 9.0 percent decline in petroleum prices, the
largest monthly drop since October 2006. The September decline in petroleum prices followed an 8.2
percent decrease in August; however, the index still rose 47.1 percent over the past 12 months.
Nonpetroleum import prices also fell in September, declining 0.9 percent after a 0.5 percent drop in
August. Prices for nonpetroleum imports rose 6.5 percent for the year ended in September.

The September decrease in nonpetroleum prices was driven by a 2.9 percent drop in the price
index for nonpetroleum industrial supplies and materials. Falling prices for natural gas and metals drove
the decline. A 1.7 percent decrease in the foods, feeds, and beverages index largely resulted from lower
prices for food oils, meat, and fish.

Prices for each of the major finished goods categories also fell in September. The price indexes
for capital goods, automotive vehicles, and consumer goods each decreased 0.1 percent. The decrease in
capital goods prices was led by computer prices, which continued to trend down in September. The fall
in computer prices more than offset a 0.2 percent advance in capital goods prices excluding computers.
The downturn in prices for automotive vehicles was the first decrease since the index fell 0.2 percent in
January 2006. Similarly, consumer goods prices decreased for the first time since April 2006.

Export Goods

Export prices decreased 1.0 percent in September following a 1.7 percent decline in August. The
September decline was led by a 1.0 percent drop in nonagricultural prices, although agricultural prices
also fell, decreasing 0.3 percent. Despite the 2.7 percent downturn over August and September, the
largest two-month decline since the index was first published monthly in December 1988; export prices
were still up 6.8 percent for the year ended in September. The decline in nonagricultural prices in
September followed a 0.7 percent drop in August, and was the largest one-month drop since the index
was first published monthly in December 1988. Nonagricultural prices rose 5.6 percent for the
September 2007-2008 period.

The September decline in nonagricultural prices was led by a 2.7 percent drop in the price index
for nonagricultural industrial supplies and materials. Lower prices for gold, precious metals, and fuel oil
led the decline.

Prices for capital goods and consumer goods also decreased in September, falling 0.1 percent and
0.3 percent, respectively. Excluding a 0.8 percent decrease in computer prices, capital goods prices
advanced 0.1 percent in September. In contrast, the price index for automotive vehicles ticked up 0.1
percent.

The modest decline in agricultural prices was led by lower prices for soybeans, fruit, and
vegetables, which more than offset increasing corn and wheat prices. The September decrease in
agricultural prices followed a 9.6 percent decline in August. The index advanced 19.5 percent over the
past twelve months.

Imports by Locality of Origin

Lower fuel prices in September drove the declines in import prices from Canada, Mexico, and
the European Union for the second consecutive month. Import prices from Canada fell 4.9 percent, the
largest one-month drop since the index was first published monthly in September 1992. Prices for
imports from Mexico declined 1.7 percent, and import prices from the European Union fell 1.3 percent.
Despite the decreases over the past two months, prices for imports from Canada, Mexico, and the
European Union rose 19.8 percent, 16.3 percent, and 7.8 percent, respectively, over the past year.

Prices for imports from Japan also declined in September, falling 0.6 percent, which was the first
monthly downturn for the index since November 2007 and the largest one-month drop since January
2006. The index rose 1.1 percent over the past year.

In contrast, import prices from China continued to rise in September, ticking up 0.1 percent for
the second consecutive month after rising 3.2 percent from February to July. Import prices from China
increased 4.8 percent for the year ended in September.

Import and Export Services

Import air passenger fares decreased 6.9 percent in September after falling 3.0 percent in August.
The September decline was led by a 10.1 percent seasonal decrease in European fares. The index for
import air passenger fares increased 15.0 percent for the September 2007-2008 period. Export air
passenger fares fell 8.7 percent in September. The decrease was driven by a 10.9 percent seasonal drop
in European fares. Over the past 12 months, the index increased 13.1 percent.

The price index for import air freight decreased 3.4 percent in September, led by an 8.1 percent
decline in European air freight prices. The September drop in overall import air freight prices followed a
0.2 percent decrease the previous month. Export air freight prices fell 1.4 percent in September after
advancing 3.6 percent in August. Import air freight prices rose 16.8 percent over the past 12 months
while export air freight prices advanced 22.0 percent over the same period.

Export-Import Price Indexes – September 2008 [PDF]

Source: Department of Labor, Bureau of Labor Statistics