June 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.

-JUNE 1996-

The U.S. Import Price Index fell 1.2 percent in June, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decrease, which followed a 0.6 percent decline in May, was again paced by falling petroleum prices. The U.S. Export Price Index also fell in June, declining 0.1 percent after rising 0.4 percent in the previous month.

Import Goods

The June decline in import prices was the largest since December 1992. For the year ended in June, the price index for all imports was down 0.8 percent. The index for petroleum imports fell 7.4 percent in June following a 2.8 percent decline in May. Despite recent declines, imported petroleum prices were up 4.6 percent over the past 12 months.

Nonpetroleum import prices also contributed to the overall decline in import prices, falling 0.5 percent in June after a decrease of 0.4 percent the previous month. Prices for nonpetroleum imports were down 1.3 percent over the past year. The import index for foods, feeds, and beverages led the June drop in nonpetroleum import prices, falling 2.7 percent over the month after increasing in each of the two previous months. Capital goods prices declined 0.5 percent in June and were down 3.5 percent over the past year.

Each of the other major import categories declined by more modest amounts in June. Import prices for industrial supplies and materials, excluding petroleum, fell 0.2 percent last month. The decrease marked the third consecutive monthly decline in this index. The import indexes for consumer goods and automotive vehicles also fell in June, down 0.2 and 0.1 percent, respectively.

Export Goods

The decrease in export prices in June was led by falling prices for agricultural exports, down 2.2 percent after rising 9.5 percent over the prior three months. The turnaround in the price index for agricultural exports was largely attributable to falling grain prices. For the year ended in June, agricultural export prices were up 20.4 percent.

In contrast, the price index for nonagricultural exports rose 0.2 percent in June after showing no change the month before. The increase was only the second in the past 12 months. The June rise in nonagricultural export prices was attributable to price increases for each of the major finished goods categories. Prices for capital goods rose 0.4 percent last month and were up 0.9 percent for the year ended in June. The indexes for consumer goods and automotive vehicles each increased 0.1 percent in June. Over the past 12 months, exported consumer goods and automotive vehicles were up 1.2 percent and 1.6 percent, respectively.

The index for nonagricultural industrial supplies and materials fell 0.1 percent in June, resuming a downward trend after showing no change in May. Exported nonagricultural industrial supplies and materials have fallen 2.4 percent since January and 6.7 percent in the year ended in June.

Imports by Locality of Origin

Prices of imports from Japan fell 0.5 percent in June, the same as in May. The index has declined in each of the last seven months and was down 3.5 percent for the year. (See table 7.)

The price index of imports from the Asian Newly Industrialized Countries also fell in June, declining 0.2 percent. Over the past 12 months, the index declined 1.4 percent.

Import prices from the European Union declined 0.1 percent in June, but were up 1.6 percent over the past 12 months.

Prices of imports from Canada were up 0.3 percent over the past month. The rise in Canadian import prices followed a decline of 1.0 percent in May. For the year ended in June, the index was up 0.2 percent.

Import and Export Services

The Import Air Freight Index, down 1.4 percent, declined for the second consecutive quarter. Both the Atlantic and Pacific regions contributed to this decrease by falling 2.5 percent and 0.9 percent, respectively. (See table 9.)

The Export Air Passenger Fares Index rose 1.4 percent this quarter. The increase was due to gains of 5.8 percent in the Atlantic region and 4.3 percent in the Canadian region. Declines of 2.4 percent in the Pacific region and 1.1 percent in the Latin American/Caribbean region moderated the increase.

The Import Ocean Liner Freight index posted a decline of 2.6 percent. Both the U.S. East Coast and U.S. West Coast indexes moved downward with decreases of 1.8 percent and 3.3 percent, respectively.

The Import Crude Oil Tanker Freight index also dropped 2.6 percent, reflecting decreases in both the Atlantic and Gulf regions. The decline followed a decrease of 9.4 percent in the previous quarter.