March 1999 U.S. Import and Export Price Indexes

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-MARCH 1999-

The U.S. Import Price Index edged up 0.1 percent in March, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. An increase in imported petroleum prices more than offset a decline in nonpetroleum import prices. In contrast, the price index for U.S. exports fell 0.3 percent in March after posting a 0.2 percent decline in February.

Import Goods

The March uptick in overall import prices, the second in three months, was led by a 7.7 percent rise in imported petroleum prices - the largest monthly rise in nearly three years. Despite the increase, the index was still down 3.0 percent over the past 12 months. Petroleum prices have advanced in each of the past three months, but were still down 12.5 percent for the year ended in March. In contrast, nonpetroleum import prices were down 0.4 percent in March, the largest monthly decline since August. This index had been largely unchanged for the past six months. For the 12 months ended in March, the index was down 2.3 percent.

The decline in nonpetroleum import prices was led by a 0.8 percent drop in the price index for imported capital goods, as computer prices continued to move lower. The decrease in capital goods prices was the largest monthly downturn since February 1998 and followed a five-month period when this index was relatively stable. For the year ended in March, the index was down 3.6 percent.

Other broad areas posted moderate decreases. The import price index for consumer goods fell 0.5 percent in March after increasing 0.3 and 0.2 percent in February and January, respectively. Over the past 12 months, consumer goods prices fell 0.7 percent. The price indexes for nonpetroleum industrial supplies and materials and for foods, feeds, and beverages decreased in March, falling 0.3 and 0.6 percent, respectively. Over the March 1998-99 period, nonpetroleum industrial supplies and materials prices were down 4.5 percent and foods, feeds, and beverages prices were down 4.3 percent.

The only major nonpetroleum category that did not have a price decline in March was automotive vehicles, which was unchanged. For the year ended in March, the index was up 0.1 percent.

Export Goods

The decline in export prices continued a trend of decreases in this index, which was down 2.7 percent over the past 12 months. A 3.0 percent decrease in the price index for agricultural exports led the decline in March. The agricultural exports index was down 9.8 percent for the year ended in March. The price index for nonagricultural exports declined 0.1 percent in March, following a 0.1 percent increase in February. Over the past 12 months, nonagricultural export prices were down 1.9 percent, on average.

Prices in each of the other major categories for exports either declined or were unchanged in March. The price index for nonagricultural industrial supplies and materials fell 0.2 percent in March and 5.0 percent over the past 12 months. Prices for exported consumer goods also fell last month, declining 0.1 percent; for the March 1998-99 period, the index was down 0.7 percent.

The price indexes for exported capital goods and for automotive vehicles both were unchanged in March. Over the past 12 months, prices for exported capital goods fell 1.4 percent, while the index of exported automotive vehicles rose 0.9 percent.

Imports by Locality of Origin

Prices of imports from Japan were down 0.6 percent in March, resuming a downward trend after rising 2.2 percent over the previous four months. For the year ended in March, import prices from Japan were down 1.7 percent. The import price index for the Asian Newly Industrialized Countries continued to decrease, falling 0.7 percent in March--the 19th consecutive month this index has declined; over the past 12 months, this index was down 7.2 percent. Prices of imports from the European Union were down 0.5 percent in March and were unchanged over the past 12 months.

In contrast, the price indexes for imports from Canada and Latin America increased in March, rising 0.3 and 0.6 percent, respectively. Prices of imports from Canada had posted declines in each of the prior four months and were down 1.6 percent for the year ended in March. Import prices from Latin America also fell, on average, over the past 12 months, declining 3.7 percent.

Import and Export Services

The import air freight index rose 1.3 percent in the first quarter of 1999, after rising 8.0 percent in the September-to- December quarter last year. For the year ended in March, the index was up 9.1 percent. In contrast, the price index for export air freight was down 6.4 percent over the past three months after increasing 1.2 percent in the last quarter of 1998. The index declined 4.6 percent for the 12 months ended in March.

The import air passenger index declined 1.2 percent from December to March. Over the past 12 months, however, the index was still up 0.5 percent because of a 9.0 percent increase posted in the second quarter of 1998. The price index for export air passenger fares posted a second consecutive quarterly increase of 2.7 percent and was up 6.7 percent for the March 1998-99 period.

The import ocean liner freight index was unchanged from December to March and up 7.7 percent for the year ended in March.