November 1998 U.S. Import and Export Price Indexes

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-NOVEMBER 1998-

The U.S. Import Price Index decreased 0.3 percent in November, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decline, attributable to a sharp drop in petroleum prices, followed increases of 0.2 percent in each of the previous two months. Prices for nonpetroleum imports increased slightly in November for the second consecutive month. Export prices edged up 0.1 percent in November, after decreasing for five consecutive months.

Import Goods

The 0.3 percent decrease in import prices was attributable to a 7.7 percent drop in petroleum prices that more than offset an increase in nonpetroleum import prices. The decline for the petroleum index was the largest drop since March and followed gains of 3.0 percent and 6.4 percent for October and September, respectively. Over the past 12 months, petroleum prices declined 34.4 percent, after falling 18.5 percent over the November 1996-97 period. In contrast, the index for nonpetroleum import prices rose 0.1 percent for the second consecutive month, the first time since 1995 that this component advanced two months in a row. Despite the recent modest gains, the index for nonpetroleum imports fell 3.5 percent for the year ended in November.

Prices for each of the major finished goods areas, as well as nonpetroleum industrial supplies materials, rose in November, but were down over the past 12 months. The gains posted this month paralleled the recent weakening of the U.S. dollar. The indexes for consumer goods and automotive vehicles, parts, and engines rose for the second consecutive month, up 0.2 percent and 0.3 percent, respectively, in November. Both indexes, however, were down slightly for the year. Prices for capital goods edged up 0.1 percent, marking only the second monthly increase in two years; for the year ended in November, the index fell 5.5 percent. Prices for nonpetroleum industrial supplies and materials also rose 0.1 percent in November, after recording declines in the previous five months. Over the past 12 months, the index decreased 7.6 percent.

In contrast, due in part to a turnaround in vegetable prices, the index for food, feeds, and beverages declined 1.2 percent in November, after recording gains in the previous two months. Over the past 12 months, the index for food, feeds, and beverages dropped 2.8 percent.

Export Goods

Prices for overall U.S. exports, up 0.1 percent, rose for the first time since May, as an increase in the index for agricultural prices offset a dip in nonagricultural prices. For the year ended in November, the index for export prices fell 3.9 percent. Led by rising prices for grains and oilseeds, agricultural export prices rose 2.0 percent in November, the largest increase recorded for this index since February 1997. Over the past 12 months, agricultural prices fell 10.4 percent. In contrast, after recording no change in October, the index for nonagricultural export prices resumed a downward trend, falling 0.1 percent in November. During each of the last 17 months, prices for nonagricultural exports have either decreased or posted no change, on average. Prices for nonagricultural exports were down 3.0 percent for the year ended in November.

Prices for capital goods dipped 0.1 percent in November, after recording no change in October. The index for exported capital goods has either decreased or been unchanged for 15 consecutive months and was down 2.3 percent for the year. Prices for nonagricultural industrial supplies and materials also fell 0.1 percent in November, the 16th consecutive monthly decrease. Over the November 1997-98 period, the index was down 7.3 percent.

In contrast, prices for both automotive vehicles and consumer goods, excluding autos, edged up 0.1 percent in November. Over the past 12 months, prices for automotive vehicles, parts, and engines rose 0.6 percent and consumer goods, excluding autos, were down 0.5 percent.

Imports by Locality of Origin

The price index for imports from Japan rose 1.5 percent in November, the largest increase in the index since May 1995. The increase, the first since March of this year, was attributable in part to the recent weakening of the U.S. dollar against the Japanese yen. For the year ended in November, the index for imports from Japan fell 3.5 percent.

Prices of imports from the European Union also rose in November, up 0.3 percent after gaining 1.0 percent in October. An increase in most European currencies versus the U.S. dollar contributed to the advances. For the November 1997-98 period, the index registered no change.

In contrast, the index for imports from the Asian Newly Industrialized Countries continued to decline in November. However, the 0.1 percent decline was smaller than the average monthly decline of 0.8 percent over the previous 14 months. For the year ended in November, the index was down 8.5 percent, compared with a 4.7 percent drop during the prior 12-month period.

Import prices from Canada also were down 0.1 percent in November, after gaining 0.4 percent in October. Over the last 12 months, the index fell 3.6 percent.

The index for imports from Latin America also posted a turnaround in November, declining 0.9 percent after gaining 0.8 percent and 1.1 percent in October and September, respectively. The November decrease primarily reflected the downturn in prices for petroleum and petroleum products.