August 1996 U.S. Import and Export Price Indexes

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-AUGUST 1996-

The U.S. Import Price Index fell 0.2 percent in August, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was the fourth consecutive monthly decline and was attributable to falling prices for both petroleum and nonpetroleum imports. The U.S. Export Price Index also fell in August, decreasing 0.1 percent, marking the third consecutive monthly decline.

Import Goods

The 0.2 percent decrease in August in the index for nonpetroleum import prices was the eighth monthly decline in the past year and brought the total 12-month drop to 2.2 percent. The downturn has paralleled the strong dollar and marked the largest 12-month decline in this component since the series was first published 10 years ago. Prices for imported petroleum dipped 0.2 percent in August after advancing 2.3 percent in July. For the year ended in August, the petroleum index was up 17.7 percent. Overall, import prices edged down 0.5 percent during the past 12 months.

Import prices for most major commodity groups continued to fall in August. The index for foods, feeds, and beverages, led primarily by falling coffee prices, dropped 0.8 percent in August, following declines of 1.3 percent in July and 2.7 percent in June. Import prices for capital goods fell 0.4 percent in August, about the same as the average monthly decline for the preceding six months. Over the past 12 months, the capital goods index has dropped 4.0 percent. Import prices for consumer goods and for industrial supplies and materials, excluding petroleum, posted more modest decreases, both down 0.1 percent in August. For the 12-month period, these indexes declined 0.4 percent and 3.5 percent, respectively.

In contrast, the index for automotive vehicles, parts, and engines was unchanged in August, after gaining 0.2 percent in the previous month, and was up a slight 0.3 percent for the year.

Export Goods

The dip in export prices in August was due to falling prices for both agricultural and nonagricultural goods. The index for agricultural exports continued to retreat from higher prices posted in the spring, edging down 0.2 percent in August after falling 4.1 percent over the previous two months. For the August 1995-96 period, however, the index rose 15.1 percent.

Nonagricultural export prices fell slightly for the second consecutive month (and ninth month in the past year), dropping 0.1 percent last month and 0.2 percent in July. For the year ended in August, the index declined 1.4 percent. Nonagricultural industrial supplies and materials continued to lead the decline, falling 0.5 percent in August, about the same as in the previous two months. Over the past 12 months, the index was down 6.1 percent.

In contrast, the indexes for finished goods posted no change or modest gains in August. Export prices for capital goods were unchanged in August after falling 0.3 percent in July. Prices for both automotive and consumer goods were up in August, 0.2 percent and 0.1 percent, respectively. Over the past 12 months, prices rose 1.5 percent for automotives and 1.1 percent for consumer goods.

Imports by Locality of Origin

Import prices from Japan fell for the ninth consecutive month, reflecting the relative strength of the dollar versus the yen. Over the past 12 months, the index has declined 4.5 percent. (See table 7.)

The price index of imports from the Asian Newly Industrialized Countries also fell in August, the sixth consecutive monthly decline in the index. The 0.4 percent decrease in August followed a 0.5 percent decline in July. For the year ended in August, the index was down 2.4 percent.

Prices of imports from Canada, down 0.6 percent, fell for the fourth consecutive month. The index has declined 1.5 percent over the past year.

In contrast, import prices from the European Union rose 0.2 percent in August. For the past 12 months, the index was up 1.2 percent.