January 1997 U.S. Import and Export Price Indexes

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-JANUARY 1997-

The U.S. Import Price Index decreased 0.3 percent in January, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decline followed a slight gain of 0.1 percent in December and was attributable to a drop in nonpetroleum prices. The U.S. Export Price Index rose 0.2 percent in January after posting no change in the previous month.

January 95-96 2.4 9.7 1.8 3.1 19.3 1.0 January 96-97 0.8 27.0 -1.9 -1.5 -8.3 -0.5 r = revised to reflect late reports and corrections by respondents. Revisions prior to October 1996 are due to rounding associated with rebasing the indexes.

Import Goods

Import prices decreased in January for the second time in three months, despite a continued upward trend in petroleum prices. The petroleum index rose 1.3 percent in January after recording a modest gain of 0.2 percent in December. In contrast, the index for nonpetroleum imports declined in January, falling 0.4 percent after edging up 0.1 percent in December. The monthly decrease was the third in the past four months.

The index for capital goods led the January decline in nonpetroleum import prices, falling 1.8 percent, the largest monthly decrease recorded since the series became monthly in 1989. Falling prices for computers, peripherals, and semiconductors had the largest impact. Prices for capital goods have decreased 5.4 percent over the past 12 months, recording only one monthly increase in the past year. During this period, the dollar has appreciated sharply. The import price indexes for automotive vehicles and consumer goods resumed recent downward trends; both fell 0.1 percent in January after posting a 0.2 percent increase and no change, respectively, in the preceding month. The index for foods, feeds, and beverages also fell in January, decreasing 0.3 percent after falling 1.2 percent in December.

In contrast, the index for industrial supplies and materials excluding petroleum continued a recent upward trend, rising 1.0 percent in January after posting rises of 0.7 percent and 0.4 percent in the preceding two months. Despite the recent increases, the index fell 1.2 percent for the year ended in January.

Export Goods

Both agricultural and nonagricultural prices contributed to the modest rise in export prices in January. For the year ended in January, however, average export prices were down 1.5 percent. The index for agricultural exports, which had registered decreases in the past seven months, edged up 0.1 percent in January. The upturn was led by a 2.1 percent price increase for agricultural industrial supplies and materials, which offset the continued decline in grain prices. Agricultural export prices fell 8.3 percent over the past year.

Nonagricultural export prices also rose 0.1 percent in January, about the same as in the previous three months. Over the past 12 months, however, the index was down 0.5 percent. The January advance in the index for nonagricultural exports was consistent across major commodity areas. The export price indexes for capital goods and automotive vehicles, parts, and engines were both up 0.2 percent in January, after posting a 0.1 percent gain and no change in the previous month, respectively. Prices for exported consumer goods and nonagricultural industrial supplies also edged up in January, both advancing 0.1 percent after 0.2 percent rises in December. For the past 12 months, all of the major finished goods indexes rose on average between 0.1 and 1.2 percent, while nonagricultural industrial supplies and materials were down 2.8 percent on average.

Imports by Locality of Origin

Import prices from Japan continued to decrease, falling 0.6 percent in January. (See table 7.) The index has dropped 4.4 percent over the past year, paralleling the sustained strength of the dollar versus the yen.

The price index for imports from the Asian Newly Industrialized Countries decreased 0.4 percent for the third consecutive month. Over the past 12 months, the index was down 3.0 percent. Import prices from the European Union also fell 0.4 percent in January, reversing the 0.2 percent increase in December. Over the past 12 months this index edged up 0.6 percent.

In contrast, import prices from Canada rose for the fifth consecutive month, increasing 0.2 percent in January. The index for imports from Canada rose 0.5 percent for the year ended in January.