May 1996 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.

-MAY 1996-

The U.S. Import Price Index fell 0.5 percent in May, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decrease followed increases of 0.8 percent in April and 0.7 percent in March and largely reflected a turnaround in petroleum prices. The U.S. Export Price Index increased 0.4 percent in May, following an increase of 0.5 percent in the previous month.

Import Goods

Price decreases for both petroleum and nonpetroleum imports contributed to the overall May decline for imports. Petroleum prices dropped 2.2 percent in May, a turnaround from the 17.5 percent increase over the previous two months. The petroleum index, which recorded large monthly fluctuations over the past 12 months, gained 10.0 percent for the year ended in May. After no change in April, nonpetroleum prices fell 0.3 percent in May, the same as in March. Nonpetroleum prices have dropped 0.8 percent over the past 12 months.

Prices for industrial supplies excluding petroleum led the decline for nonpetroleum imports, falling 0.7 percent in May, about the same as the previous month. For the year ended in May, this index dropped 1.1 percent. Declines also were recorded for all the finished goods indexes in May. Prices for capital goods dropped for the fourth consecutive month, falling 0.2 percent in May. Over the past four months, this index fell 1.8 percent, and it was down 2.8 percent for the year. Both the automotive vehicles and consumer goods indexes edged down 0.1 percent in May, after posting a 0.1 percent increase and no change in April, respectively.

In contrast, import prices for foods, feeds, and beverages were up in May, rising 0.4 percent. The increase for the index followed a 3.3 percent gain in April.

Export Goods

The May gain in export prices was attributable to continued increases for agricultural exports, up 3.1 percent. Led primarily by higher grain prices, the index for agricultural exports has risen 9.5 percent over the past three months and 24.8 percent for the year. For the second consecutive month, nonagricultural export prices declined 0.1 percent, after decreasing 0.3 percent in both March and February. The index was down 1.7 percent over the past 12 months.

Price declines for nonagricultural exports continued to be led by falling prices for nonagricultural industrial supplies and materials which decreased for the fourth consecutive month. The index for nonagricultural industrial supplies and materials fell 0.2 percent in May and 7.0 percent for the year. In addition, both capital and consumer goods prices fell in May, dropping 0.1 and 0.3 percent, respectively. The index for capital goods was unchanged in April and March, while the consumer goods index posted increases in each of the previous four months.

In contrast with the other finished goods areas, prices for automotive vehicles rose 0.2 percent in May after showing no change in April. For the year ended in May, the auto index gained 1.6 percent.

Imports by Locality of Origin

Prices of imports from Japan fell 0.3 percent in May, the same decline reported in each of the previous three months. The index, down 2.8 percent for the year, has declined for six consecutive months. (See table 7.)

The price of imports from the Asian Newly Industrialized countries also continued to decline in May, edging down 0.1 percent. Over the past 12 months, the index declined 0.9 percent.

The index for imports from Canada reversed in May, falling 0.7 percent after gaining 0.5 percent in April. The decrease was attributable to declines for both nonmanufactured goods, down 1.2 percent, and manufactured goods, down 0.5 percent. Overall, Canadian import prices rose a modest 0.4 percent for the year as gains for nonmanufactured goods were balanced by declining prices for manufactured goods.

The price index for imports from the European Union also fell, 0.3 percent, in May. Import prices from the European Union, however, were up 1.9 percent over the last 12 months.