December 1993 U.S. Import and Export Price Indexes

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

-DECEMBER 1993-

The U.S. Import Price Index declined 0.9 percent in December, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decrease followed a 0.6 percent fall in November and was attributable to a continuing decline in petroleum prices. In contrast, the U.S. Export Price Index rose 0.3 percent in December, the same as the November increase. The advance was again due to higher prices for agricultural exports.

Overall, import prices were down 0.9 percent for the year, compared with a 0.2 percent increase in 1992. Export prices increased 1.0 percent in 1993, compared with a 0.6 percent rise in the previous year.

Import Goods

In December, prices for imported petroleum, which accounts for one tenth of U.S. imports, plunged 10.6 percent, marking the seventh- -and largest--decline in this index in the past 8 months. In the year just ended, petroleum prices fell 20.9 percent, following declines of 6.0 percent in 1992 and 33.0 percent in 1991.

The index for nonpetroleum imports resumed its recent upward trend in December, rising 0.1 percent after dipping 0.2 percent in the previous month. Prices of nonpetroleum imports were up 1.5 percent, on average, in 1993, slightly more than the two preceding annual increases.

Contributing to the December price increase in nonpetroleum imports was a 0.9 percent rise in prices of nonpetroleum industrial supplies and materials--primarily attributable to a continued advance in prices for imported wood. In addition, prices for motor vehicles were up 0.2 percent in December, while the index for foods, feeds and beverages rose 0.3 percent.

In contrast, the indexes for capital goods, down 0.4 percent, and consumer goods, off 0.1 percent, each fell for the second month in a row. In the year ended in December, prices of capital goods rose 0.7 percent, while imported consumer goods advanced 1.0 percent.

Export Goods

The rise in export prices in December was led by the recent upswing in the index for agricultural commodities, which increased 3.0 percent in December following a 2.3 percent rise in November. Overall, prices for agricultural exports advanced 8.3 percent in 1993 compared with a 0.4 percent decline in the previous year.

In contrast, the index for nonagricultural exports (which accounts for 90 percent of exports) was unchanged in December after edging down 0.1 percent in each of the 3 preceding months. For the year ended in December, prices for nonagricultural exports were up 0.1 percent, compared with a 0.8 percent rise in 1992.

The relative lack of movement in export prices for nonagricultural commodities in December was reflected in the major subgroups. The index for capital goods (which accounts for 40 percent of U.S. exports) edged down 0.1 percent in December, marking the fifth month in a row this group has changed 0.1 percent or less. For the year, prices of capital goods slipped 0.3 percent. The indexes for both motor vehicles and consumer goods posted small increases of 0.1 percent in December and less than 1.0 percent for the year as a whole. The index for nonagricultural industrial supplies and materials was unchanged in December as price increases for wood were offset by declines in fuel prices.

Summary of annual percent changes 12 months ended in December

Imports by Country or Region of Origin

The price index for imports from the European Community continued to move lower in December, falling 0.8 percent after a 0.6 percent decline in the previous month. For the year ended in December, goods from the European Community edged down 1.6 percent, compared with a 1.0 percent drop in 1992. Prices of Japanese imports were unchanged, on average, during December after increasing 6.8 percent during the first 11 months of 1993. In 1992, Japanese goods had posted a 2.7 percent increase. The index for goods from the Asian Newly Industralized Countries, which registered relatively little movement all year, was also unchanged in December. Canadian goods were up 0.2 percent, on average, in December, but were down 1.3 percent for the year.

International Services

Air Transportation

Price trends were mixed for the air freight indexes in the fourth quarter, with the Inbound Air Freight Index showing a slight decrease of 0.5 percent and the Outbound Air Freight Index with a small increase of 0.8 percent. The decline in the Inbound Air Freight Index was attributable to a 0.9 percent drop in the Pacific region, while the increase in the Outbound Air Freight Index was primarily influenced by an increase of 1.2 percent in the Atlantic region. Over the year, the Inbound Air Freight Index posted a moderate gain of 3.9 percent resulting from a 6.3 percent increase during the second quarter, and the Outbound Air Freight index dropped 2.5 percent, reflecting the drop in outbound freight rates for the first 3 quarters of this year.

The U.S. Carrier Air Passenger Fares Index and the Foreign Carrier Air Passenger Fares Index both experienced significant decreases this quarter (6.4 percent and 8.4 percent respectively) influenced by declines in the Atlantic and Pacific regions. These were the first downturns this year for both air passenger fares indexes, leaving annual gains of 3.1 percent for the U.S. Carrier Air Passenger Fares Index and 0.8 percent for the Foreign Carrier Air Passenger Fares Index.

Ocean Transportation

The Inbound Ocean Liner Freight Index continued to fall, posting its fourth consecutive quarterly decline. The 1.2 percent decrease was the result of declines in rates on both coasts. Overall for 1993, the index fell 3.0 percent.