October 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.

-OCTOBER 1998-

The U.S. Import Price Index increased 0.2 percent in October, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The monthly increase, the second in a row, again was led by a rise in the price index for imported petroleum. The index for nonpetroleum imports was unchanged in October. Export prices continued to decline in October, falling 0.1 percent for the month.

Import Goods

The 0.2 percent increase in import prices in October follows a revised 0.1 percent rise in the previous month. Prior to September, the index for overall import prices had declined for 10 consecutive months. Over the past 12 months, import prices were down 6.4 percent. In both September and October, increasing petroleum prices drove the overall increase in import prices; the index of imported petroleum prices rose 5.0 percent in October after increasing 3.6 percent in September. For the year ended in October, however, petroleum prices declined 31.9 percent. The index for nonpetroleum import prices was unchanged in October after declining in each of the prior 12 months. From October 1997 to October 1998, the index decreased 3.9 percent.

Prices for imported capital goods, down 0.1 percent, continued to decrease as declining prices for computers and computer equipment more than offset the effects of a weakened U.S. dollar on most other capital goods prices. The decline, however, was the smallest monthly drop since the index turned down in July 1997. For the year ended in October, capital goods prices fell 6.1 percent. The import price index for nonpetroleum industrial supplies and materials also fell in October, decreasing 1.0 percent. Over the past 12 months, nonpetroleum industrial supplies and material prices were down 7.4 percent.

In contrast, the index of imported consumer goods prices, which had decreased or remained unchanged in each of the seven preceding months, rose 0.3 percent in October. The increase paralleled the recent turnaround in the U.S. dollar. The October rise was the largest in this index since a 0.4 percent increase in December 1995. Despite the increase last month, prices for imported consumer goods fell 1.2 percent over the year ended in October. The import indexes for automotive vehicles and foods, feeds, and beverages also rose in October, up 0.2 percent and 1.2 percent, respectively. For the October 1997-98 period, prices for automotive vehicles and foods, feeds, and beverages decreased 0.6 percent and 2.3 percent, respectively.

Export Goods

Prices for overall U.S. exports fell 0.1 percent in October as a small increase in the index for agricultural prices was not large enough to offset continued declines in nonagricultural prices. Export prices declined steadily throughout most of the past year and were down 4.0 percent over the last 12 months. Agricultural export prices posted a 0.2 percent rise in October after declining 3.0 percent in September and 4.1 percent in August. Despite the October increase, the index was down 11.5 percent for the year. In contrast, the index for nonagricultural export prices declined 0.1 percent in October, similar to the movements in the two preceding months. Prices for nonagricultural exports have declined in each of the past 12 months and were down 3.0 percent over the year.

Prices for nonagricultural industrial supplies and materials fell 0.6 percent in October, continuing a year-long trend of decreasing prices. For the year ended in October, the index was down 7.6 percent. Capital goods export prices also fell in October, dropping 0.1 percent after posting no change in September. Exported capital goods have either decreased or been unchanged for 14 consecutive months and were down 2.2 percent for the year ended in October.

The price index for exported automotive vehicles rose 0.5 percent in October, reflecting the introduction of new model passenger cars. (The indexes in this release are not seasonally adjusted.) The October rise was the largest in this index since a 1.0 percent increase in October 1995. Over the October 1997-98 period, the index was up 0.6 percent.

The export index for consumer goods prices was unchanged in October and was down 0.6 percent over the past 12 months.

Imports by Locality of Origin

The price index for imports from Japan fell a modest 0.1 percent in October after declining an average of 0.5 percent in each of the past six months. Price declines for imports from Japan were moderated by a recent increase in the value of the Japanese yen against the U.S. dollar. For the year ended in October, the index fell 5.1 percent.

Prices of imports from the Asian Newly Industrialized Countries also continued to decline in October, falling 0.4 percent. Over the past 12 months, the index was down 9.4 percent.

In contrast, prices of imports from the European Union rose 1.0 percent in October, in part due to the decline in the value of the U.S dollar against most European currencies. For the October 1997-98 period, the index increased 0.2 percent.

The price indexes for imports from Latin America and Canada also were up in October, increasing 1.0 percent and 0.2 percent, respectively. For the year ended in October, import prices from Canada were down 4.0 percent.