July 1999 U.S. Import and Export Price Indexes

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U.S. IMPORT AND EXPORT PRICE INDEXES - JULY 1999 -

The U.S. Import Price Index increased 0.9 percent in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was attributable to rising prices for petroleum imports. Export prices were down 0.2 percent in July, the first decrease in the index since March.

Import Goods

Prices for U.S. imports increased 0.9 percent in July, after dipping 0.2 percent in June, and were up 1.4 percent over the past 12 months. The increase in July was due to a resumed upward trend in imported petroleum prices. After edging down 0.1 percent in June, petroleum prices rose 11.0 percent in July and were up 43.4 percent over the past 12 months. In contrast, nonpetroleum import prices were down for the second month in a row, dipping 0.1 in July. For the July 1998- 99 period, the index for nonpetroleum imports was down 1.4 percent.

The small decline in nonpetroleum import prices in July was led by a 0.7 percent drop in the index for capital goods. Computers and semiconductors again led the price decrease for capital goods prices, which fell 3.5 percent over the past year. Prices for imported foods, feeds, and beverages also fell in July, down 1.0 percent, primarily due to a drop in coffee prices. The index for foods, feeds, and beverages was down 1.2 percent in the previous month and 3.5 percent over the past year. In addition, the price index for consumer goods decreased for the fifth consecutive month, down 0.1 percent in July. For the year ended in July, the index was down 0.7 percent.

In contrast, the price index for industrial supplies and materials, excluding petroleum, rose for the third consecutive month, up 1.1 percent in July, with lumber prices leading the increase. For the year ended in July, however, the index for industrial supplies and materials, excluding petroleum, was still down 0.3 percent. The price index for automotive vehicles, parts, and engines also rose in July, edging up 0.1 percent after dipping the same amount in June. Over the July 1998-99 period, the index rose 0.9 percent.

Export Goods

After recording no change in June, the price index for U.S. exports fell 0.2 percent in July as prices for both agricultural exports and nonagricultural exports declined. For the year ended in July, overall export prices were down 1.6 percent. Agricultural export prices decreased 2.0 percent in July, led by declining prices for grains and oilseeds. Over the past 12 months, the index fell 10.8 percent. Nonagricultural export prices also declined in July, falling a modest 0.1 percent after edging up 0.1 percent in June. For the year, nonagricultural export prices were down 0.5 percent.

Modest 0.1 percent declines in the July price indexes for both capital goods and consumer goods contributed to the overall decline in nonagricultural export prices. The decline in capital goods prices was led by continuing declines in the prices of computers and semiconductors. For the year ended in July, capital goods prices fell 1.0 percent, and consumer goods prices were down 0.1 percent. A 5.6 percent decrease in the price index for nonagricultural foods-primarily due to declining prices for fish-also contributed to the decline in the overall price index of nonagricultural exports.

In contrast, the price indexes for nonagricultural industrial supplies and materials and for automotive vehicles posted small increases in July, rising 0.2 percent and 0.1 percent, respectively. For the July 1998-99 period, nonagricultural industrial supplies and materials prices fell 1.0 percent, and automotive vehicle prices were up 0.9 percent.

Imports by Locality of Origin

The price index for imports from Japan declined 0.2 percent for the second consecutive month in July. For the year, however, prices of imports from Japan were up 0.5 percent.

The price index of imports from the Asian Newly Industrialized Countries continued to move lower in July, falling 0.4 percent. The index has not posted a monthly increase since April of 1997 and was down 3.6 percent over the July 1998-99 period.

Prices of imports from the European Union were unchanged in July, after decreasing 0.2 percent in the previous month. Over the past 12 months, the index rose a modest 0.4 percent.

In contrast, the price indexes for imports from Canada and Latin America rose 1.5 percent and 1.2 percent, respectively, in July. Led primarily by gains for nonmanufactured goods, the indexes increased 2.4 and 3.9 percent, respectively, during the past year.