August 2000 U.S. Import and Export Price Indexes

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- AUGUST 2000-

The U.S. Import Price Index rose 0.2 percent in August, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was attributable to a rise in both petroleum and nonpetroleum import prices. The Export Price Index decreased 0.3 percent in August, following declines of 0.1 percent in each of the previous two months.

Import Goods

The increase in the import price index in August followed no change in July and a 1.3 percent rise in June. In August, imported petroleum prices increased 0.6 percent after a 1.6 percent decline in July and a 10.6 percent jump in June. Over the past 12 months petroleum prices rose 45.8 percent. Nonpetroleum import prices edged up 0.1 percent in August and have increased in six of the past seven months. From August 1999 to August 2000, this index was up 1.6 percent. The overall import price index rose 5.8 percent over the past year.

The increase in nonpetroleum import prices was largely attributable to the ongoing rise in prices for industrial supplies and materials excluding petroleum. Led by the continued advance in prices for natural gas and unfinished metals, the index of industrial supplies and materials excluding petroleum rose 0.9 percent in August after increasing 1.0 percent in July and 1.4 percent in June. Over the past 12 months, the index rose 10.5 percent. Prices for foods, feeds, and beverages also increased in August, rising 0.4 percent. Despite the recent increase, the index decreased 1.1 percent over the past year.

In contrast, the indexes for all the major finished goods areas-capital goods; automotive vehicles, parts, and engines; and consumer goods-either declined or posted no change in August. Prices for capital goods declined 0.2 percent in August following no change in the previous month. From August 1999 to August 2000, the index fell 1.5 percent. Prices for automotive vehicles, parts, and engines reversed in August, falling 0.1 percent, after increasing in the previous four months. Over the past year, the index increased 0.9 percent. The index for consumer goods was unchanged in August, after increasing 0.3 percent in July. Prices for consumer goods were down 0.6 percent over the past 12 months.

Export Goods

In August, prices for overall exports declined 0.3 percent as both agricultural prices and nonagricultural prices fell. Led by the continued decline in prices for grains and oilseeds, the index for agricultural exports decreased 2.1 percent in August, the same as in July. After increasing in each of the first five months of the year, the index has declined 5.5 percent over the past three months. Nonagricultural export prices decreased 0.2 percent in August, after increasing 0.2 percent in the previous month. Nonagricultural export prices rose 1.9 percent for the year ended in August. Despite decreasing in four of the past five months, the index for overall exports rose 1.3 percent over the same period.

Export prices for each of the four major nonagricultural commodity areas either decreased or were unchanged in August. Led by declining prices for chemicals and fuels, the index for nonagricultural industrial supplies and materials dropped 0.7 percent in August, after increasing in each of the previous three months. The index was up 7.0 percent for the year ended in August.

The major indexes for finished goods-automotive vehicles, parts, and engines; capital goods; and consumer goods-either were unchanged or dipped slightly in August after increasing in the previous month. Both the indexes for automotive vehicles, parts, and engines and capital goods were unchanged last month. Over the past year, auto prices rose 1.2 percent while capital goods prices declined 0.1 percent. The index for consumer goods edged down 0.1 percent in August after increasing 0.1 percent in July. From August 1999 to August 2000, consumer goods rose 0.2 percent.

Imports by Locality of Origin

The price index for imports from Japan declined 0.2 percent in August after an increase of 0.3 percent in July. For the year ended in August, the index rose 2.0 percent.

Import prices for goods from the Asian Newly Industrialized Countries also were down in August, falling 0.4 percent. From August 1999 to August 2000, the index decreased 0.8 percent.

Import prices from Canada fell 0.2 percent in August, the first decline for this index since January 1999. The downturn was attributable to declining prices for nonmanufactured goods, down 0.9 percent. For the year ended in August, however, the index of import prices from Canada rose 7.6 percent.

In contrast, the index for imports from Latin America rose 0.7 percent in August. Over the past 12 months, import prices from Latin America have advanced 12.5 percent.

Import prices from the European Union posted no change in August after rising 0.7 percent the previous month. The index of import prices from the European Union rose 1.7 percent over the past year.