December 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.

-DECEMBER 2001-

The U.S. Import Price Index decreased 0.9 percent in December, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decline followed drops of 1.4 percent and 2.3 percent in November and October, respectively. The Export Price Index also fell for the third consecutive month, down 0.2 percent in December.

From December 2000 to December 2001, import prices fell 8.9 percent—the largest calendar year decrease for this index since publication began in 1983. The decrease over the past year was attributable to declining prices for both petroleum and nonpetroleum imports. Export prices also fell for the year ended in December 2001, down 2.5 percent, as both agricultural and nonagricultural export prices contributed to the annual decline.

Import Goods

The 0.9 percent decrease in prices for imported goods in December continued a year-long downward trend; prices have dropped 4.5 percent over the past three months alone. The ongoing sharp decline for overall imports continued to be led by falling prices for petroleum products, which fell 6.3 percent in December and has fallen 29.7 percent since September 2001. Over the past 12 months, petroleum prices have decreased 38.5 percent. The index for nonpetroleum import prices also fell in December, down 0.3 percent. This index has decreased in 11 consecutive months and was down 4.4 percent for the year—the largest calendar year decrease for this index since publication began in 1985.

Within nonpetroleum imports, prices for industrial supplies and materials excluding petroleum fell 0.9 percent in December, led by falling prices for lumber, textiles, and paper. This was the 11th decline in a row, and for the year ended in December, the index for industrial supplies and materials excluding petroleum fell 14.2 percent. Import prices for capital goods and consumer goods dropped on an annual basis for the sixth consecutive year. The index for capital goods has declined for nine consecutive months and was down 0.3 percent in December. Import prices for capital goods were down 2.6 percent for the year. The index for consumer goods decreased for the fourth month in a row, down 0.1 percent in December, the same as in November. For the year, the index decreased 0.8 percent. Led by declining vegetable prices, the index for foods, feeds, and beverages fell 0.7 percent in December, after increasing 0.6 percent the previous month. Over the year, the index for foods, feeds, and beverages was down 4.9 percent.

In contrast, the index for automotive vehicles, parts, and engines edged up 0.1 percent in December. Over the past 12 months, however, the index was down 0.1 percent.

Export Goods

Prices for overall exports decreased 0.2 percent last month, the 10th decrease in the past 11 months for this index, as continued price declines for nonagricultural exports outweighed an upturn in agricultural export prices. Agricultural export prices increased 1.1 percent in December, led by rising prices for corn, soybeans and other oilseeds. Despite the recent increase, the index for agricultural exports had fallen in each of the previous three months and was down 1.6 percent for the year. In contrast, nonagricultural export prices decreased 0.4 percent in December, the same as in November. Nonagricultural export prices have declined in nine of the past ten months and were down 2.7 percent over the past year. Prices for overall exports were down 2.5 percent for the year.

Industrial supplies and materials—particularly fuels and lubricants, chemicals, paper, and lumber—continued to lead the drop in nonagricultural export prices. Nonagricultural industrial supplies and materials dropped 1.2 percent in December, after falling 1.3 percent and 1.6 percent in the previous two months. Over the past 12 months, the index was down 8.6 percent.

All of the major finished goods areas (capital goods, autos, and consumer goods) either decreased or posted no change in December. The index for capital goods decreased 0.3 percent, after edging up 0.1 percent in November. Over the past 12 months, the index fell 0.8 percent. The export price indexes for both autos and consumer goods were unchanged in December. From December 2000 to December 2001, the indexes rose 0.3 percent and 0.1 percent, respectively.

Summary of December-to-December percent changes

Imports by Locality of Origin

Import prices from Japan fell for the 11th time in the past 12 months, dipping 0.1 percent in December. For the year ended in December, the index fell 2.8 percent.

Import prices from the Asian Newly Industrialized Countries also declined in December, decreasing 0.6 percent after no change in November. The index has not increased since December 2000 and was down 5.4 percent over the past year.

Prices from Latin America and Canada, both heavily influenced by prices of petroleum and other raw materials, fell 1.4 percent and 1.2 percent in December, respectively. Over the past 12 months, the Latin American index dropped 8.7 percent, while prices from Canada were down 11.5 percent. The calendar year decrease for Canada was the largest since publication began for this series in 1991.

Import prices from the European Union also were down in December, dipping 0.1 percent, after declining in each of the previous two months. The recent 3-month decline was largely attributable to falling prices for nonmanufactured goods, particularly petroleum. For the year ended in December, the index fell 1.4 percent.

Import and Export Services

The import air passenger index increased 3.1 percent in December, after decreasing in each of the previous three months. Over the past year, the index advanced 6.8 percent. In contrast, export air passenger fares continued to decrease, falling 0.3 percent in December. Despite the recent declines, the index rose 0.7 percent for the year.

The import price index for air freight declined 0.4 percent in the fourth quarter of 2001, after recording no change in the previous quarter. For the year ended in December, the index fell 3.4 percent. The price index for export air freight was unchanged from September to December, after gaining 0.2 percent in the third quarter. For the December 2000 to December 2001 period, the index declined 0.8 percent.

ANNOUNCEMENT OF CHANGES IN THE U.S. IMPORT AND EXPORT PRICE INDEXES

Beginning with the release of January 2002 data on February 14, the Bureau of Labor Statistics will make two changes to the U.S. Import and Export Price Indexes. First, all price indexes will be reweighted to 2000 trade weights. Second, these indexes will be rebased from 1995=100 to 2000=100.

The current practice is to update the weights in these price indexes every five years. The new weights will be based on U.S. export and import shipment values for the calendar year 2000 (as reported by the Bureau of the Census) and will be used in the calculation of indexes from January 2002 forward. In addition, as a result of shifts in trade patterns, there also will be minor changes in the publication structure.

In keeping with the program’s policy of using a reference base that is the same as the weight base, all indexes will be rebased from 1995=100 to 2000=100. This impacts the level of the indexes prior to January 2002; however, it should not (except for rounding) cause any adjustments to the percent changes between different time periods.