May 1998 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.

-MAY 1998-

The U.S. Import Price Index declined 0.1 percent in May, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decrease was the seventh in a row and was led by a continued fall in prices for nonpetroleum imports. In contrast, the U.S. Export Price Index rose 0.1 percent in May following declines in each of the past five months.

Import Goods

The rate of decline in import prices continued to slow somewhat in May, edging down 0.1 percent after falling 0.3 percent in April.Import prices had fallen between 0.8 percent and 1.3 percent in each of the prior four months. The slowdown was attributable to imported petroleum prices which continued a slight turnaround in May, rising 1.4 percent after a 1.2 percent increase in April. Petroleum prices had dropped 31.2 percent over the prior five months. For the year ended in May, petroleum prices fell 26.1 percent. In contrast, for the third month in a row prices for nonpetroleum imports declined 0.3 percent. Nonpetroleum import prices have decreased or posted no change in each of the past 11 months and were down 3.3 percent since May 1997.

The decrease in nonpetroleum import prices was led by a continuing decline in the price index for imported capital goods, down 0.5 percent. Prices of imported capital goods have steadily declined since 1995 and were d own 6.5 percent over the past 12 months. Led by declining coffee prices, the index of imported foods, feeds, and beverages fell 0.9 percent in May after increasing 0.8 percent the previous month. For the year ended in May, the index was down 4.3 percent. The index for automotive vehicles also fell in May, down 0.1 percent for the second consecutive month. Over the past 12 months, prices for imported automotive vehicles were up 0.9 percent.

Import prices for both nonpetroleum industrial supplies and materials and consumer goods were unchanged in May. Both price indexes decreased over the past 12 months, down 3.7 percent and 1.5 percent, respectively.

Export Goods

The export price index edged up 0.1 percent in May, as an upturn in agricultural prices offset the continued decline for nonagricultural prices. Despite the May increase, the index for all exports was down 2.8 percent for the year ended in May. After decreasing in each of the previous five months, the price index of agricultural exports rose 0.9 percent in May. In contrast, prices of nonagricultural exports fell for the ninth consecutive month, dipping 0.1 percent in May. The index for nonagricultural exports decreased 2.1 percent for the May 1997-98 period.

The export price index for nonagricultural industrial supplies and materials fell 0.2 percent in May, led by continued declines in prices for chemicals, lumber, and other wood supplies. Prices for nonagricultural industrial supplies and materials have declined for 10 consecutive months and were down 4.5 percent for the year ended in May. The indexes for both capital goods and automotive vehicles, parts, and engines were unchanged in May. Prices for capital goods, which decreased 0.3 percent in each of the previous two months, were down 1.9 percent over the past year. The index for autos has not moved by more than 0.1 percent over the past eight months and posted a modest 0.2 percent gain for the May 1997-98 period.

In contrast, consumer goods excluding autos rose 0.2 percent in May after declining 0.3 percent in April. Over the past 12 months, the index rose 0.5 percent.

Imports by Locality of Origin

The price index of imports from the Asian Newly Industrialized Countries continued to decline, falling 1.1 percent in May, about the same as the decrease posted in the previous month. The index decreased 8.3 percent for the May 1997-98 period compared with a 3.1 percent drop during the prior 12-month period. (See table 7.)

Prices for imports from Japan kept up a three-year downward trend, falling 0.3 percent in May after decreasing 0.6 percent in April. Over the past 12 months, the index was down 4.0 percent.

The import price indexes for both Latin America and the European Union posted upturns in May, rising 0.7 and 0.4 percent, respectively. Both indexes had dropped in the previous four months. The index for the European Union was down 1.1 percent from a year ago.

The price index for imports from Canada also rose in May, up 0.5 percent. Despite increasing in the past two months, the index was down 2.3 percent for the year ended in May.