October 1995 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.

-OCTOBER 1995-

The U.S. Import Price Index fell 0.6 percent in October, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decrease was the fourth in the last 5 months. The U.S. Export Price Index advanced 0.1 percent in October, the same as in September.

Import Goods

Over the past 5 months, import prices have declined 1.5 percent after advancing 3.5 percent during the first 5 months of 1995. The October decrease was broadly based as both the petroleum and nonpetroleum indexes fell. Imported petroleum prices resumed a recent downward trend in October, falling 3.7 percent after rising 2.3 percent in the previous month. The index had decreased 4 of the past 5 months, dropping 13.0 percent over the time period. In addition, nonpetroleum import prices decreased 0.2 percent for the second consecutive month after having posted increases earlier in the year.

The October decrease in nonpetroleum import prices was highlighted by the continued decline in prices for capital goods, which dropped 0.6 percent in October and 0.7 percent in September. Import prices also fell for foods, feeds, and beverages, down 1.2 percent, and for consumer goods, down 0.2 percent; the decreases were the same in September for both indexes. Nonpetroleum industrial supplies, also posted a 0.2 percent decrease in October, after increasing in the previous 3 months. In contrast, the index for imported automotive vehicles, parts, and engines recorded a 0.3 percent increase in October, the same as in September.

Export Goods

The 0.1 percent increase in export prices matched the September increase and was led by a 2.0 percent rise in the index for agricultural exports. Over the past 12 months the index for all exports was up 4.8 percent, due largely to an 18.5 percent increase in agriculture prices.

In contrast, the price index for nonagricultural exports fell for the fourth consecutive month, declining 0.2 percent in October. Nonagricultural exports were down 0.3, 0.4, and 0.2 percent in September, August, and July, but were still up 3.1 percent over the past 12 months. The recent declines have been primarily associated with lower prices for nonagricultural industrial supplies and materials, down 0.9 percent in October.

Moderating the October drop in nonagricultural export prices was a 0.9 percent increase in the index for exported automotive vehicles. The increase reflected the introduction of new model passenger cars. (The indexes in this release are not seasonally adjusted.)

The export price indexes for capital goods and for consumer goods were unchanged for the second and third consecutive months, respectively. Over the year ended in October, both indexes were up a modest 1.4 percent.

Imports by Locality of Origin

The price index for imports from Japan continued its recent downward trend, falling 0.7 percent in October after declining 0.7 percent in September and 0.3 percent in August. For the year ending in October, however, the index rose 3.1 percent, due largely to the 5.0 percent gain recorded from January to July of this year.

Import prices from Canada also fell 0.7 percent in October, a marked turnaround from the 0.9 percent increase in September. Despite the October decrease, the index rose 6.1 percent for the year ending in October.

The import price index for the Asian Newly Industrialized Countries decreased 0.2 percent in October, after edging up 0.1 percent in September. Over the past 12 months, the index recorded a modest 0.9 percent increase.

Import prices from the European Union also remained relatively stable, edging up 0.1 percent in October after falling by the same amount the previous month. For the year ending in October, however, the index rose 4.6 percent, attributable to larger increases earlier in 1995.