November 1996 U.S. Import and Export Price Indexes

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-NOVEMBER 1996-

The U.S. Import Price Index fell 0.1 percent in November, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decrease was attributable to dips in both petroleum and nonpetroleum prices. The U.S. Export Price Index, paced by the continued decrease in agricultural prices, fell 0.5 percent in November.

Import Goods

Import prices, which have increased 1.7 percent over the past 12 months, decreased slightly in November, following gains of 0.6 percent and 1.1 percent in October and September, respectively. The gains over the previous two-month period were largely attributable to a 15.3 percent increase in petroleum prices. For the year ended in November, petroleum prices have advanced 38.3 percent in contrast to a 0.8 percent decline over the November 1994-95 period. Prices for nonpetroleum imports also declined in November, dropping 0.2 percent, after a 0.3 percent decline in the previous month. Over the past 12 months, the nonpetroleum index has declined 1.9 percent.

All of the major finished goods indexes either decreased or showed no change in November, after recording declines in the previous month. Prices for capital goods continued to move downward, falling 0.5 percent in November after decreasing 0.3 percent in October. In November, the prices for automotive vehicles fell 0.2 percent and consumer goods were unchanged after each fell 0.2 percent in the previous month. The index for foods, feeds, and beverages also was down in November, falling 0.6 percent after posting gains over the prior two months.

In contrast, the index for industrial supplies and materials, excluding petroleum, gained 0.4 percent. The increase followed a 0.6 percent decrease in October and was due primarily to increased prices for selected building materials, particularly wood.

Export Goods

The November decrease in export prices marked the sixth consecutive monthly decline. Over the past 12 months, the index has dropped 1.3 percent. The aggregate index has moved parallel with agricultural export prices which also have declined for six consecutive months. Agricultural export prices fell 2.8 percent in November and have decreased 16.0 percent since May. The current downturn in agricultural prices coupled with the upward spike in the spring of this year resulted in a 5.9 percent decrease for the year ended in November. For the November 1994-95 period, agricultural prices rose 19.2 percent. Nonagricultural prices also contributed to the decline this month, edging down 0.1 percent. The index has posted modest monthly movements of 0.2 percent or less since March and was down 0.7 percent from a year ago.

Within nonagricultural exports, the largest downward impact was attributable to nonagricultural industrial supplies and materials, falling 0.3 percent in November. For the November 1995-96 period, the price index for nonagricultural industrial supplies and materials dropped 2.5 percent. Prices for consumer goods and capital goods were unchanged for the second consecutive month.

In contrast, automotive vehicles, parts, and engines rose 0.2 percent in November, the same as in the previous month.

Imports by Locality of Origin

Prices of goods imported from Japan fell 0.4 percent in November, after dropping 0.5 percent in the previous month. (See table 7.) The index has decreased in 10 of the past 11 months and was down 4.2 percent since last November.

The price index for imports from the Asian Newly Industrialized Countries also fell in November, dropping 0.3 percent. The index, which edged up 0.1 percent in October, declined in the previous seven months and was down 2.7 percent over the past 12 months.

Prices of imported goods from the European Union turned around in November, decreasing 0.2 percent after posting gains of 0.3 percent or more in each of the previous three months. Despite the decrease this month, the index was up 1.5 percent over the past 12 months.

In contrast, the index for imports from Canada rose 0.4 percent in November following gains of 0.2 percent and 0.8 percent in October and September, respectively. The index was unchanged from a year ago.