September 1999 U.S. Import and Export Price Indexes

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-SEPTEMBER 1999-

The U.S. Import Price Index increased 0.7 percent in September, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase followed gains of 1.0 percent and 0.8 percent in the previous two months and was largely attributable to the continued increase in prices for imported petroleum. U.S. export prices were up 0.2 percent in September, following a 0.3 percent increase in August.

Import Goods

Import prices continued a recent upswing, gaining 0.7 percent in September and 2.5 percent over the past three months. For the year, the index was up 3.4 percent, after declining 6.3 percent over the September 1997-98 period. The September increase was led by a 7.2-percent increase in petroleum prices. Imported petroleum prices were up 62.0 percent over the past 12 months, in contrast to the 29.7 percent decline over the previous 12-month period. The price index of nonpetroleum imports edged up 0.1 percent in September, the same as in the previous month. Despite recent modest gains, nonpetroleum import prices dipped 0.5 percent over the year.

The price indexes for consumer goods and for industrial supplies and materials excluding petroleum both increased 0.3 percent in September. The September increase was the largest for consumer goods since December 1995 and was led by gains for nondurable and nonmanufactured goods. The increase for industrial supplies and materials excluding petroleum marked the fifth consecutive monthly increase in this component. Import prices for capital goods and automotive vehicles, parts, and engines were both unchanged in September. For the year ended in September, capital goods prices fell 3.2 percent and prices for automotive vehicles, parts, and engines gained 1.3 percent.

The index for foods, feeds, and beverages fell for the fourth consecutive month, down 0.1 percent in September. Over the past 12 months, the index fell 3.1 percent.

Export Goods

Overall export prices rose 0.2 percent in September and were unchanged over the past 12 months. Increasing prices for nonagricultural exports pushed overall export prices up in September and more than offset a decline in agricultural prices. The 0.5-percent decline in agricultural prices in September followed a 1.9-percent increase in the previous month. For the year, the index for agricultural exports prices fell 3.1 percent. In contrast, nonagricultural export prices, which had posted little movement during the past year, were up 0.2 percent for the second consecutive month. For the September 1998-99 period, the index also rose 0.2 percent.

The increase in nonagricultural export prices continued to be led by rising prices for nonagricultural industrial supplies and materials. This index increased for the sixth consecutive month, up 1.0 percent in September, the same as in August. Over the past 12 months, the index for nonagricultural industrial supplies and materials gained 2.7 percent.

In contrast, the price indexes for the major finished goods areas were either unchanged or edged up only slightly last month. Prices for exported capital goods and consumer goods were both unchanged in September. Over the past 12 months, capital goods prices were down 1.0 percent, while consumer goods prices were unchanged over the same period. Exported automotive vehicles, parts, and engines edged up 0.1 percent in September, after posting no change in the previous two months. For the year, the index gained 0.9 percent.

Imports by Locality of Origin

The price index for imports from Japan increased 0.6 percent in September, paralleling the recent rise in the value of the yen. The September gain was the largest increase in the index since November 1998. Over the past 12 months, the index was up 1.9 percent.

Prices of imports from the Asian Newly Industrialized Countries were unchanged last month, after posting a 0.2- percent increase in August-which had represented the first monthly increase for the index since March 1997. For the year ended in September, the index was down 2.2 percent.

The price indexes for imports from Latin America and the European Union rose 1.8 percent and 0.8 percent, respectively, in September. Over the September 1998-99 period, the prices of imports from Latin America rose 9.5 percent, while the prices of imports from the European Union were up 1.5 percent.

The price index of imports from Canada increased 0.4 percent in September, as price increases for nonmanufactured goods outweighed price declines for manufactured goods. The overall index for imports from Canada rose 4.3 percent for the year ended in September.

Import and Export Services

The import price index for air freight increased 1.9 percent in the third quarter of 1999, after decreasing 2.7 percent in the second quarter. Over the past 12 months, the index rose 8.3 percent. In contrast, the export air freight index decreased 1.7 percent last quarter and was down 6.6 percent for the year ended in September.

Import air passenger fares increased 0.6 percent in the third quarter, as gains posted in the Atlantic region countered declines in the Pacifc and Latin American/Caribbean regions. For the year ended in September, overall import air passenger fares were up 4.6 percent on average. Export air passenger fares also increased for the third quarter, up 3.9 percent. Over the September 1998-99 period, the index increased 11.0 percent.

The index for import ocean liner freight was up 7.9 percent last quarter, after increasing 22.6 percent in the second quarter. Over the past 12 months, the index increased 31.2 percent.