July 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.

-JULY 1998-

The U.S. Import Price Index declined 0.9 percent in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decrease, the ninth in a row, was attributable to declines for both petroleum and nonpetroleum import prices. The U.S. Export Price Index dipped 0.1 percent in July, after falling 0.6 percent in June.

Import Goods

The decline in July was the largest decrease for import prices since a similar dip in February. Import prices dropped 6.2 percent for the year ended in July, continuing a three-year downward trend. Prices for petroleum imports fell 6.8 percent in July after decreasing 3.1 percent in June. Over the past 12 months, the index for petroleum prices fell 31.9 percent after falling 8.9 percent in the July 1996–97 period. In addition, the price index of nonpetroleum imports decreased 0.5 percent in July, the largest drop in this index since January. Over the year, the index was down 3.9 percent, which was more than twice as large as the drop over the July 1996-97 period.

For the second consecutive month, the decrease in nonpetroleum import prices was led by falls in the price indexes of nonpetroleum industrial supplies and materials and of capital goods, down 1.1 percent and 0.7 percent in July, respectively. Prices for nonpetroleum industrial supplies and materials fell 5.7 percent over the past 12 months. Imported capital goods prices have declined consistently over the past three years, dropping 7.2 percent for the year ended in July. The price index of imported consumer goods edged down for the second consecutive month, dipping 0.1 percent in July. Over the past 12 months, the index decreased 1.5 percent.

In contrast, the price indexes for imported foods, feeds, and beverages and for automotive vehicles both posted no change in July. For the year ended in July, imported foods, feeds, and beverages prices fell 2.3 percent, while automotive vehicle prices edged up a modest 0.1 percent.

Export Goods

The price index for exports edged down 0.1 percent in July, as a decline in nonagricultural prices more than offset increasing prices for agricultural exports. The decrease in export prices followed a 0.6 percent decline in June and continued a two-year trend of declining prices. Export prices fell 3.4 percent in the year ended in July after a 1.6 percent drop over the previous July 1996-97 period. The index of nonagricultural exports fell 0.2 percent in July, the 13th consecutive month that this index has posted either a decline or no change. For the year ended in July, nonagricultural export prices were down 2.9 percent. In contrast, prices for agricultural exports rose 0.2 percent in July, but were still down 6.9 percent over the past 12 months.

The decline in the price index of nonagricultural exports was led by a 1.1 percent decrease in the price index of nonagricultural industrial supplies and materials. Price declines for exported petroleum products, chemicals, and metals contributed to the overall decrease in the index of nonagricultural industrial supplies and materials prices. For the year ended in July, the index fell 7.0 percent. Exported capital goods prices were unchanged in July after falling 0.7 percent in June. The price index of exported capital goods, the largest component of U.S. exports, has not posted a monthly increase since August 1997 and was down 2.4 percent over the July 1997-98 period.

Exported automotive vehicle and consumer goods prices posted little change in July, up 0.1 percent and down 0.1 percent, respectively. Over the past 12 months, automotive vehicle prices rose 0.1 percent and consumer goods prices fell 0.3 percent.

Imports by Locality of Origin

The price index of imports from the Asian Newly Industrialized Countries continued to decline in July, decreasing 1.2 percent for the second consecutive month. The decline in July was the eighth time in the last nine months that this index posted a monthly decline of at least 0.8 percent. For the year ended in July, the index was down 9.3 percent, compared with a decline of 3.7 percent in the prior year. (See table 7.)

Price decreases for imports from Japan also persisted in July. The index fell 0.6 percent after posting a similar decline of 0.7 percent in June. Over the past 12 months, the index was down 5.4 percent.

The import price indexes for both Canada and the European Union posted declines in July, down 0.3 percent and 0.2 percent, respectively. The index for imports from Canada fell 3.0 percent over the past 12 months, while imports from the European Union were down 0.8 percent over the same period.

The price index for imports from Latin America also declined in July, down 0.9 percent.