February 1998 U.S. Import and Export Price Indexes

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-FEBRUARY 1998-

The U.S. Import Price Index fell 0.8 percent in February, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decline marked the fourth month in a row the index was down and was again attributable to decreases in both petroleum and nonpetroleum prices. The U.S. Export Price Index, down 0.2 percent, fell for the third month in a row, primarily due to falling agricultural prices.

IMPORTS EXPORTS Month All Petroleum Non- All Agri- Nonagri- Imports Imports petroleum Exports cultural cultural Imports Exports Exports 1997

Feb. 1996-97 0.3 19.7 -1.9 -1.2 -6.3 -0.4 Feb. 1997-98 -6.1 -32.0 -3.3 -2.3 -9.0 -1.4

Import Goods

The February import price decline of 0.8 percent followed slightly larger declines of 1.2 percent and 1.0 percent in the previous two months, respectively. Over the past 12 months, the import price index decreased 6.1 percent. Petroleum prices fell 7.4 percent in February and declined 32.0 percent for the year ended in February. Over the past four months alone, the index for petroleum prices dropped 24.1 percent. Nonpetroleum import prices also continued to slide, falling 0.3 percent in February, the eighth consecutive month without an increase. In January, nonpetroleum import prices decreased 0.6 percent. The nonpetroleum price index decreased 3.3 percent for the year ended in February, and was down 5.1 percent over the past two years.

The index for imported capital goods led the drop in nonpetroleum import prices, falling 0.7 percent. The index has declined for eight consecutive months and has posted monthly increases only twice since December 1995. For the year ended in February, the index decreased 6.7 percent compared with a 5.6 percent drop over the February 1996-97 period. The index for industrial supplies and materials excluding petroleum continued a recent three month slide, falling 0.5 percent last month after declining 1.6 percent in January and 1.4 percent in December; decreasing chemical and textile prices had the largest impact on the February decline. For the second consecutive month, the index for foods, feeds, and beverages fell, dropping 0.7 percent in February and 0.5 percent the previous month.

In contrast, the indexes for automotive vehicles, parts, and engines and for consumer goods each increased in February, rising 0.4 percent and 0.2 percent, respectively. The increase in auto prices last month followed no change in January, while consumer goods were pushed up in February largely due to a seasonal increase in flower prices.

Export Goods

The 0.2 percent price decline for exported goods followed decreases of 0.7 percent and 0.4 percent in January and December, respectively. For the past 12 months, the index fell 2.3 percent. The decline in February was attributable to falling agricultural prices as nonagricultural export prices posted no change. Agricultural export prices fell for the third consecutive month, down 1.5 percent after falling 2.7 percent in January and 0.8 percent in December. The February decline was largely attributable to a drop in vegetable prices which countered an upturn in prices for grains and oilseeds. Export prices for nonagricultural commodities were unchanged on average in February after decreasing in each of the preceding five months. For the February 1997-98 period, prices for nonagricultural exports were down 1.4 percent.

The index for nonagricultural industrial supplies and materials fell for the seventh consecutive month in February, dipping 0.1 percent after falling 1.1 percent in January. For the year ended in February, the index decreased 2.7 percent.

In contrast, the indexes for all the major finished goods categories posted no change in February. The indexes for capital goods and consumer goods were unchanged last month after each fell 0.2 percent in January. Export prices for automotive vehicles, parts, and engines posted no change, on average,in each of the past three months.

Imports by Locality of Origin

Prices for imports from the Asian Newly Industrialized Countries continued to decline in February, down 0.2 percent. (See table 7.) The February decline,however, was less than the 1.1 percent monthly average decrease over the preceding three months. For the year ended in February, the index decreased 5.9 percent.

Prices of goods imported from Japan also fell 0.2 percent last month, continuing a two-year downward slide. The drop followed larger decreases of 1.1 percent and 0.7 percent in January and December, respectively. For the February 1997-98 period, the index decreased 5.1 percent.

The price index for imports from Canada fell 0.7 percent in February, following declines in each of the preceding three months. Over the past 12 months, the index was down 3.6 percent.

Prices for imports from the European Union also continued a recent downturn, falling 0.3 percent last month after decreasing 0.5 percent in January. The index decreased 2.1 percent over the February 1997-98 period.

Prices for goods imported from Latin America decreased 1.1 percent in February after falling 2.5 percent in January. This index was first published last month.