September 1996 U.S. Import and Export Price Indexes

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-SEPTEMBER 1996-

The U.S. Import Price Index rose 0.8 percent in September, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase, attributable to both rising petroleum and nonpetroleum import prices, followed a modest 0.1 percent gain in September. In contrast, the U.S. Export Price Index, down 0.8 percent in September, fell for the fourth consecutive month.

Sept. 1994-95 3.8 5.8 3.5 5.4 16.0 4.1 Sept. 1995-96 0.7 24.1 -1.6 -0.6 3.6 -1.2

Import Goods

The 0.8 percent rise in import prices in September followed four months of generally flat or lower import prices. For the year ended in September, import prices were up 0.7 percent. Prices for petroleum imports led the September increase, advancing 5.0 percent after rising 2.1 percent and 2.0 percent in August and July, respectively. Over the last 12 months, petroleum prices were up 24.1 percent. Prices for nonpetroleum imports also rose in September, up 0.3 percent, only the second time in the past year the index has increased. For the 12 months ended in September, nonpetroleum prices were down 1.6 percent.

Most of the major imported goods categories contributed to the September increase in nonpetroleum import prices. The index for foods, feeds, and beverages rose 1.9 percent after falling 4.6 percent over the prior three months. Prices of nonpetroleum industrial supplies and materials rose 0.6 percent in September, the first increase since March, but were still down 3.2 percent over the past 12 months. September advances also were posted for the price indexes of imported automotive vehicles and for consumer goods, up 0.3 percent and 0.2 percent, respectively. The increase in consumer import prices was the first rise since December.

In contrast, capital goods import prices continued to fall, down 0.1 percent. For the year ended in September, the index has fallen 3.5 percent.

Export Goods

The decline in export prices in September was attributable to lower agricultural prices. The index for agricultural exports fell 7.3 percent in September, the largest drop in this series since it was first published monthly in 1989. The decline marked the fourth consecutive monthly decrease and was led by the ongoing fall in the index for agricultural foods, feeds, and beverages, down 9.3 percent in September - as grain prices continued their downward trend. Despite the recent downswing, over the past 12 months, the index for agricultural exports rose 3.6 percent.

In contrast, nonagricultural exports edged up 0.1 percent in September , after falling 0.2 percent in each of the previous two months. Over the past 12 months, the index fell 1.2 percent. The index for nonagricultural industrial supplies led the rise for this component in September, up 0.6 percent, a reversal of the downward trend recorded over the previous three months. For the September 1995-1996 period, the index fell 4.6 percent. Consumer goods also rose in September, up 0.2 percent, following no change over the preceding two months. The consumer goods index was up 1.2 percent in the past 12 months. Automotive vehicle prices, which posted no change last month, rose 1.3 percent for the 12-month period ended in September.

In contrast, the index for capital goods fell 0.1 percent last month, after dropping 0.2 percent in August and 0.3 percent in July. For the year ended in September, the index edged up 0.1 percent.

Imports by Locality of Origin

Prices of goods imported from Japan were unchanged on average in September. (See table 7.) The index had declined in each of the prior nine months and was down 3.8 percent over the past year.

Import prices from the Asian Newly Industrialized Countries continued to decline in September, falling 0.3 percent. The index was down 2.7 percent over the past 12 months.

Prices of imports from Canada and the European Union both rose in September, up 0.7 and 0.4 percent, respectively. Import prices from Canada, however, were down 1.2 percent over the past 12 months, while average import prices from the European Union were up 1.9 percent over the same period.

Import and Export Services

The Import Air Freight Index continued to fall with a 0.3 percent decline in the September quarter. The decrease was attributable to a 1.4 percent drop in the Pacific region. The index for the Atlantic region increased 2.1 percent. (See table 9.)

The Import Air Passenger Fares Index dropped 1.5 percent this quarter. Both the Pacific and Atlantic regions contributed to the decline with decreases of 9.2 percent and 0.2 percent, respectively. In contrast, the Export Air Passenger Fares Index climbed for the third consecutive quarter, posting a 3.6 percent increase. All of the regional indexes contributed to the gain this quarter, most notably the Atlantic region with an 8.2 percent increase and the Canadian region with a 7.2 percent increase.

The Import Ocean Liner Freight Index declined for the second quarter in a row, dropping 1.2 percent. Both the U.S. West Coast and U.S. East Coast indexes moved downward with decreases of 2.4 percent and 0.1 percent, respectively.

The Crude Oil Tanker Freight Index declined for the third consecutive quarter, dropping 14.2 percent in the September quarter. The Gulf and Atlantic regions were major contributors with declines of 15.9 percent and 5.9 percent, respectively.