July 2001 U.S. Import and Export Price Indexes

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

- JULY 2001-

The U.S. Import Price Index decreased 1.6 percent in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decline, the fifth in the past six months, was attributable to falling prices for both petroleum and nonpetroleum imports. The Export Price Index decreased for the sixth straight month, down 0.4 percent in July.

Import Goods

The July drop in the import price index was the largest monthly decline since December 1992. A 6.1 percent decrease in petroleum prices led the decline and followed a 0.8 percent decrease in June. During the past 12 months, imported petroleum prices fell 16.3 percent. Nonpetroleum import prices also declined in July, down 1.0 percent, marking the sixth consecutive monthly decrease in this component. July’s decline matched the largest historical monthly decrease for nonpetroleum import prices—recorded in December 1992—as each of the major commodity areas declined. From July 2000 to July 2001, prices for nonpetroleum imports decreased 2.2 percent. Over the same time period, the price index for overall imports declined 4.2 percent.

Declines in prices for industrial supplies and materials excluding petroleum—down 3.6 percent in July—had the largest impact on the nonpetroleum import price index. A drop in natural gas prices led the decrease, while price declines for lumber, chemicals, unfinished metals, and paper and paper base stocks also contributed to the decline. Over the past 12 months, the index for industrial supplies and materials excluding petroleum fell 4.5 percent. The index for foods, feeds, and beverages also fell in July, down 1.4 percent, after also dropping in the previous three months. The index was down 5.2 percent over the past 12 months.

Each of the major finished goods areas (capital goods, consumer goods, and automotive vehicles, parts, and engines) posted declines last month of 0.2 percent or more. The price index for imported capital goods—which has increased only once over the past 15 months—fell 0.4 percent in July. Over the past year, the index declined 2.6 percent. Consumer goods and automotive vehicles, parts, and engines each decreased 0.2 percent in July. Over the past 12 months, the indexes were down 0.8 percent and 0.6 percent, respectively.

Export Goods

The price index for overall exports continued to trend downward last month, as declines for nonagricultural prices more than offset gains for agricultural prices. The index for agricultural exports rose 0.7 percent in July—largely attributable to rising prices for soybeans and corn—after edging up 0.1 percent in June. For the year, prices for agricultural exports rose 3.4 percent. In contrast, nonagricultural export prices fell 0.5 percent in July, the largest decline for this index since a similar decrease in June 1998. This index has declined for five consecutive months and was down 1.4 percent for the year ended in July. From July 2000 to July 2001, overall export prices fell 0.9 percent.

Export prices for nonagricultural industrial supplies and materials declined 1.6 percent in July, marking the sixth consecutive monthly decline in this component. Declining prices for petroleum and petroleum products, chemicals, and nonferrous and other metals had the largest impact on this index. Over the past 12 months, the nonagricultural industrial supplies and materials index fell 5.1 percent. The export price index for capital goods also fell in July, down 0.3 percent. The decrease was the largest since December 1999 and was led by declining prices for computers, computer peripherals, and semiconductors. Despite the recent decline, capital goods edged up 0.1 percent for the year ended in July. Automotive vehicles, parts, and engines were unchanged for the third straight month and up 0.3 percent for the year.

In contrast, consumer goods edged up last month, gaining 0.1 percent—the same as in June. The index, however, decreased 0.6 percent over the past 12 months.

Imports by Locality of Origin

Import prices for goods from Japan resumed a recent downward trend, decreasing 0.3 percent in July after edging up 0.2 percent in June. The index was down 2.0 percent for the year, and prior to June decreased for five consecutive months.

The price index of imports from the Asian Newly Industrialized Countries decreased 1.0 percent in July and was down six of the past seven months. The index declined 4.6 percent over the past 12 months.

The price index of imports from Canada decreased 3.1 percent in July, marking its third consecutive monthly decline. From July 2000 to July 2001, import prices from Canada decreased 2.0 percent.

The index for import prices from the European Union also declined last month, decreasing 0.7 percent. The index was down 2.6 percent for the year ended in July.

Import prices from Latin America were down 2.0 percent in July, after decreasing 0.2 percent the previous month. The index declined 2.1 percent over the past 12 months.