June 1997 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.

-JUNE 1997-

The U.S. Import Price Index increased 0.4 percent in June, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. A rise in both imported petroleum prices and nonpetroleum prices contributed to the increase. The U.S. Export Price Index fell for the third straight month, dipping 0.1 percent in June, due to a continued decline in agricultural prices.

Import Goods

The June increase in import prices was the first in six months. Despite the June increase, import prices were down 1.4 percent over the past year. Petroleum import prices continued a recent upturn, gaining 2.4 percent in June after increasing 1.1 percent in May. The recent gains in this volatile index followed monthly declines of 8.0 percent on average over the prior three months. For the year ended in June, petroleum prices dropped 1.8 percent. Nonpetroleum import prices also increased this month, rising 0.2 percent after decreasing in the previous five months. For the year, this index was down 1.7 percent.

Import prices for automotive vehicles, parts, and engines rose 0.5 percent in June and had the largest impact on the nonpetroleum index. This was the largest increase in the auto index since May 1995, also 0.5 percent. The capital goods index rose 0.2 percent in June, the first increase since September and only the third in the past two years. The turnaround paralleled the relative strengthening of foreign currencies versus the dollar. The indexes for foods, feeds, and beverages and for industrial supplies and materials excluding petroleum also contributed to the increase in June, rising 1.1 percent and 0.2 percent, respectively.

In contrast, the price index for consumer goods reversed in June, dipping 0.1 percent after posting a moderate 0.2 percent gain in May.

Export Goods

Export prices edged down 0.1 percent in June after falling 0.2 percent and 0.7 percent in May and April, respectively. For the year ended in June, export prices fell 2.7 percent. For the third consecutive month the decline was largely attributable to falling agricultural export prices, down 1.9 percent. The recent three-month decline continued to be led by a downturn in corn and wheat prices.

Over the past year, the index for agricultural exports fell 19.8 percent, in contrast to a 20.3 percent increase over the June 1995-96 period. Prices for nonagricultural exports edged up 0.1 percent in June, continuing a year long trend of changing no more than 0.2 percent in either direction.

The major finished goods categories recorded little movement in June. The price index for capital goods, which accounts for more than 40 percent of the aggregate export index, posted a slight 0.1 percent increase in June after decreasing 0.3 percent in May. The modest increase was only the second monthly gain posted over the past year. The indexes for both consumer goods and automotive vehicles, parts, and engines were unchanged in June.

Nonagricultural industrial supplies and materials rose 0.4 percent in June after edging up 0.1 percent in each of the previous two months.

Imports by Locality of Origin

The price index for imports from Japan rose 0.2 percent after decreasing for nine consecutive months. (See table 7.) Despite the June increase, the index was down 4.7 percent over the past year.

Prices for imports from Canada rose 0.1 percent on average in June, the same as last month. For the June 1996-1997 period, the index was down 0.8 percent.

Import prices from the European Union were unchanged last month after decreasing in the previous four months. Over the past year, the index was down 1.2 percent.

In contrast, prices of imports from the Asian Newly Industrialized Countries dropped 0.7 percent in June, the largest monthly decline in this index since monthly publication began in 1993. The decrease followed a 0.3 percent decline in May and contributed to the 3.4 percent decline over the past year.

Import and Export Services

The Import Air Freight Index edged up 0.7 percent in the second quarter, reversing the downward trend of the last five consecutive quarters. The increase was due to a 1.4 percent rise in the Pacific region. In contrast to the gain in the Import Air Freight Index, the Export Air Freight Index continued to fall, decreasing 0.7 percent.

During the second quarter, the Import Air Passenger Fares Index posted a gain of 12.6 percent. The most significant contributors to this increase were the Atlantic and Pacific regions which advanced 20.8 percent and 13.6 percent, respectively. The Export Air Passenger Fares Index also recorded a significant increase in the first quarter, advancing 14.8 percent. The jump in the Export Air Passenger Fares Index was due to gains in all regions.

The Import Ocean Liner Freight Index continued its downward movement for the fifth consecutive quarter with a 0.9 percent decrease. The drop reflected a decline in the U.S. West Coast region of 1.6 percent and was moderated by a slight increase in the U.S. East Coast region of 0.1 percent.