July 1996 U.S. Import and Export Price Indexes

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-JULY 1996-

The U.S. Import Price Index fell 0.2 percent in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decrease, which followed declines of 1.1 percent in June and 0.6 percent in May, was due to a continued decline in nonpetroleum import prices. The U.S. Export Price Index also fell in July, decreasing 0.5 percent after dipping 0.2 percent in June.

IMPORTS EXPORTS Month Non- Agri- Nonagri- All Petroleum petroleum All cultural cultural Imports Imports Imports Exports Exports Exports

Import Goods

Import prices continued to decrease, on average, in July despite a turnaround in petroleum prices. The petroleum index rose 1.5 percent in July after decreasing 9.6 percent over the previous two months. For the year ended in July, petroleum import prices rose 14.0 percent. In contrast, the index for nonpetroleum imports continued to decline in July, falling 0.4 percent, about the same as in each of the previous two months. Over the July 1995-96 period, the index for nonpetroleum imports dropped 2.0 percent, and it has not recorded a monthly increase since November, 1995.

The index for industrial supplies and materials, excluding petroleum, fell 0.8 percent in July after falling a monthly average of 0.6 percent over the preceding three months. Nonferrous metals, particularly copper, led the decline. The import index for foods, feeds, and beverages also fell in July, decreasing 1.2 percent after falling 2.7 percent in the previous month. Over the past 12 months the index has declined 3.3 percent. Import prices for capital goods, down 0.3 percent, fell for the sixth month in a row. Since January, the index has declined 2.8 percent. Consumer goods also fell in July, falling 0.2 percent after decreasing 0.3 percent in June.

In contrast, the index for automotive vehicles, parts, and engines rose 0.2 percent in July after posting modest declines in the previous two months.

Export Goods

Both agricultural and nonagricultural prices contributed to the decline in export prices of 0.5 percent in July. Prices for agricultural exports, which had registered large increases in the spring, were down 2.0 percent in July after falling 2.2 percent in June. The recent decline was largely attributable to falling grain prices. Despite the turnaround, agricultural export prices were up 13.7 percent for the year ended in July, about the same as posted for the July 1994-95 period.

Nonagricultural export prices resumed a downward trend in July, falling 0.3 percent after remaining basically unchanged over the previous three-month period. Over the past 12 months, the index was down 1.6 percent. Export prices for capital goods registered a significant turnaround in July, dropping 0.3 percent--due in large part to declining prices for computers, peripherals, and semiconductors--after advancing 0.4 percent in June. In addition, prices for nonagricultural industrial supplies and materials continued to decrease in July, falling 0.5 percent after recording a 0.3 percent decline in June. Over the past 12 months, the index has fallen 6.4 percent.

Prices for both automotives and consumer goods were unchanged in July after showing no change and a 0.1 percent advance, respectively, in June. For the year ended in July, the indexes for automotive vehicles and consumer goods were up 1.4 and 1.0 percent, respectively.

Imports by Locality of Origin

Import prices from Japan continued an eight-month downward trend, falling 0.4 percent in July. Over the past 12 months, the index has declined 4.6 percent. (See table 7.)

The price index of imports from the Asian Newly Industrialized Countries also fell 0.4 percent in July, recording the fifth consecutive monthly decline in the index. For the July 1995-96 period, the index declined 2.0 percent.

Prices of imports from Canada decreased 0.5 percent last month after no change in June. The index was down 0.7 percent for the year.

In contrast, import prices from the European Union were unchanged in July, after falling 0.4 percent in June. For the year ended in July, the index was up 1.2 percent.