October 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.

-OCTOBER 1996-

The U.S. Import Price Index rose 0.4 percent in October, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase followed a 1.1 percent advance in September and was attributable to a continuing rise in petroleum prices. In contrast, prices for nonpetroleum imports resumed a downward trend last month. The U.S. Export Price Index, led by an ongoing decline in agricultural prices, fell 0.3 percent in October, marking its fifth consecutive monthly decrease.

Oct. 1994-95 2.6 2.7 2.5 4.9 18.4 3.2 Oct. 1995-96 1.8 37.6 -1.6 -1.0 -1.0 -0.9

Import Goods

The 0.4 percent October increase in import prices was due to the rise in petroleum prices, which advanced 6.1 percent in October after a 7.4 percent increase in the previous month. Over the last 12 months prices of imported petroleum rose 37.6 percent. In contrast, prices for nonpetroleum imports fell 0.3 percent in October after advancing by a similar amount in September. Prior to September's increase, nonpetroleum import prices had declined in each of the four preceding months. In the year ended in October, prices for all imports rose 1.8 percent, but nonpetroleum imports declined 1.6 percent.

Four of the five major subcategories contributed to the October downturn in nonpetroleum prices. Led by lower prices for building materials and paper, the index for nonpetroleum industrial supplies and materials resumed a year-long decline in October, dipping 0.5 percent after rising 0.4 percent in the previous month. Prices for imported automotive vehicles and consumer goods also reversed September increases, declining 0.3 percent and 0.2 percent, respectively, in the most recent month. Imported capital goods, down 0.3 percent, moved lower for the ninth month in a row and dropped 3.0 percent in the year ended in October.

In contrast, the index for foods, feeds, and beverages edged up 0.1 percent after advancing 1.9 percent in September. For the year ended in October the index was up just 0.1 percent.

Export Goods

The decrease in export prices was again attributable to lower agricultural prices. The index for agricultural exports fell 2.7 percent in October following a 7.2 percent drop in the preceding month, and has decreased five months in a row. The declines followed a sharp rise in agricultural prices during the spring of this year. In contrast, the index for nonagricultural export prices continued to register little movement in October, edging up 0.1 percent for the second consecutive month. In the 12 months ended in October all export prices fell 1.0 percent while nonagricultural exports slipped 0.9 percent.

Within nonagricultural exports, the largest movement was an increase in prices of nonagricultural industrial supplies, up 0.3 percent; this index rose for the second month in a row after declining for over a year. The turnaround was primarily attributable to a rise in prices for exported fuels and lubricants. In addition, the index for automotive vehicle prices edged up 0.2 percent in October after showing no change in the previous month.

In contrast, the indexes for capital goods and for consumer goods were both unchanged in October. Prices for exported capital goods, which had moved lower in each of the three preceding months, were unchanged on average from a year ago, while the index for consumer goods gained 1.4 percent during the past year.

Imports by Locality of Origin

Prices of goods imported from Japan resumed a downward trend in October, declining 0.5 percent after recording no change in September. (See table 7.) The index had decreased in each of the preceding nine months and has dropped 3.6 percent during the past 12 months.

The index for prices of Canadian imports rose 0.4 percent, the second increase in a row, due to higher prices for nonmanufactured goods. In the year ended in October, the index fell 0.1 percent.

Prices of imported goods from the European Union were unchanged in October after rising in each of the two preceding months. Since October 1995, prices have increased 1.9 percent.

Import prices from the Asian Newly Industrialized Countries were unchanged in October after falling seven months in a row. The index was down 2.5 percent over the past year.