September 1998 U.S. Import and Export Price Indexes

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-SEPTEMBER 1998-

The U.S. Import Price Index declined 0.1 percent in September, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decrease was attributable to the ongoing decline in nonpetroleum import prices. The U.S. Export Price Index fell 0.5 percent in September, as both agricultural and non-agricultural export prices declined.

Import Goods

The 0.1 percent decrease last month continued the downward trend in import prices, which fell 6.5 percent in the year ended in September. For the second consecutive month, falling prices for nonpetroleum imports outweighed slight gains for petroleum prices. The index for nonpetroleum imports, which has posted only two monthly increases over the past three years, was down 0.2 percent in September after falling 0.4 percent in each of the previous three months. In contrast, prices for petroleum imports continued a modest turnaround, rising 1.1 percent in September after gaining 0.9 percent in August. Despite these gains, over the past 12 months the index for petroleum prices fell 32.2 percent.

Declines in all the major finished goods areas, as well as industrial supplies and materials, contributed to the decrease in nonpetroleum import prices last month. Imported capital goods prices continued to decline, falling 0.5 percent in September. Prices for capital goods fell 6.9 percent for the year ended in September, compared to 6.7 percent over the September 1996-97 period. Prices for nonpetroleum industrial supplies and materials were also down in September, falling 0.4 percent after posting larger decreases in the preceding three months. The index fell 6.9 percent for the year. More modest declines were again posted for autos and consumer goods, both down 0.1 percent in September after falling 0.2 percent in August. Over the past year, these indexes fell 0.6 percent and 1.4 percent, respectively.

In contrast, foods, feeds, and beverages increased 1.6 percent in September after decreasing 2.4 percent in August and 0.7 percent in July. Over the past 12 months the index fell 4.0 percent.

Export Goods

The price index for all exports decreased 0.5 percent for the second month in a row. For the year ended in September, export prices fell 4.1 percent. The index for agricultural prices decreased 2.6 percent in September after dropping 4.0 percent in August - with the decline again largely attributable to falling prices for grains and oilseeds. For the 12 months ended in September, agricultural export prices fell 12.8 percent.

The index of nonagricultural exports decreased 0.3 percent in September and was down 3.1 percent for the year. The September decline in this index was led by a 1.0 percent drop in prices for nonagricultural industrial supplies and materials, which were down 7.6 percent for the year. The index of capital goods, the largest component of U.S. exports, dipped 0.1 percent in September and was down 2.2 percent over the past year.

Exported consumer goods and automotive vehicle prices continued to post little movement for the third consecutive month. The index for consumer goods edged up a modest 0.1 percent, while the index for automotive vehicles was unchanged in September. Both recorded no change in August. Over the past year, consumer goods prices dipped 0.6 percent, while automotive vehicle prices rose 0.3 percent.

Imports by Locality of Origin

The price index for imports from the Asian Newly Industrialized countries continued to fall, dropping 0.7 percent in September. Over the past 12 months, the index was down 9.3 percent, compared to a 3.7 percent decline in the previous 12 months. (See table 7.) The price index of imports from Japan continued a three-year downward trend, decreasing 0.5 percent in September. Over the past 12 months the index declined 5.7 percent, compared with a 4.7 percent drop for the September 1996-97 period. In addition, the price index for imports from Canada fell 0.5 percent last month, after edging down 0.2 percent in August. This index was down 4.3 percent on average for the year ended in September.

In contrast, the indexes for imports from Latin America and the European Union increased last month, rising 0.4 percent and 0.1 percent, respectively. The gains were attributable to an increase in prices for nonmanufactured goods.

Import and Export Services

The import air freight index resumed a downward trend, falling 1.5 percent from June to September, after a second quarter increase of 1.2 percent. Over the past year, the index was down 9.4 percent. In contrast, the export air freight index recorded a 1.2 percent increase in the third quarter. Despite the upturn, the index was still down 1.0 percent for the September 1997-98 period.

The import air passenger fares index edged up 0.2 percent from June to September after gaining 9.0 percent in the second quarter. The index was up 1.2 percent for the year. Export air passenger fares also continued to increase, rising 0.3 percent in the third quarter. For the year ended in September, however, the index fell 4.6 percent.

The import ocean liner freight index increased 0.4 percent in the third quarter following a 7.9 percent increase from March to June. Over the past year the index was up 6.2 percent.