March 2002 U.S. Import and Export Price Indexes

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-MARCH 2002-

The U.S. Import Price Index increased 1.1 percent in March, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase, the largest since September 2000, was attributable to a large jump in petroleum prices. The Export Price Index also increased in March, up 0.3 percent, after declining in each of the previous five months.

Import Goods

The upturn in overall import prices in March followed a 0.1 percent dip in February and a 0.4 percent rise in January. The index had decreased for seven consecutive months prior to January and in March was down 5.7 percent below its level a year ago. The March increase was led by rising petroleum prices, which rose 15.7 percent after gaining 3.0 percent in February and 5.5 percent in January. The March increase was the largest posted for the petroleum index in almost three years. Despite the recent increases, petroleum prices fell 13.6 percent over the March 2001-2002 period. In contrast to the surge in the petroleum index, the index for nonpetroleum imports was unchanged in March after declining 0.4 percent in February. The nonpetroleum index has not increased in 14 months and fell 4.2 percent for the year ended in March.

There were offsetting movements among the commodities that comprise the nonpetroleum index. Thus, the overall increase in import prices in March was boosted by higher prices for imported industrial supplies and materials excluding petroleum--up 1.0 percent, the second increase in the past three months. The March increase was largely attributable to rising prices for natural gas, lumber, and non-monetary gold. The index for industrial supplies and materials excluding petroleum declined 11.7 percent over the past 12 months. Led by rising vegetable and coffee prices, the index for foods, feeds, and beverages also rose in March, up 0.6 percent after falling 2.3 percent in February. For the year, the index fell 4.6 percent.

In contrast, prices in each of the three major finished goods areas (capital goods, consumer goods, and automotive vehicles, parts, and engines) declined 0.2 percent in March. The index for capital goods fell for the 12th straight month and was down 3.3 percent over the year. The decline for consumer goods in March matched the 0.2 percent decline in February. For the year, the index fell 1.5 percent. The decrease for automotive vehicles, parts, and engines in March reversed the 0.2 percent increase posted in the previous month. Over the March 2001-2002 period, the index dipped 0.2 percent.

Export Goods

Prices for overall exports increased 0.3 percent in March, which was the largest one-month increase for this index since September 2000. The index had decreased, however, in each of the previous five months and was down 2.4 percent for the year. The upturn last month was the result of rising prices for both agricultural and nonagricultural export prices. The price index for agricultural exports rose 0.6 percent in March, attributable primarily to higher prices for soybeans and vegetables. Over the past 12 months, agricultural prices fell 2.4 percent. Nonagricultural export prices also increased in March, up 0.2 percent after no change in February. The index decreased 2.5 percent over the March 2001-2002 period.

The indexes for all of the major nonagricultural commodity areas either increased or recorded no change in March. The index for nonagricultural industrial supplies and materials posted the largest increase, gaining 0.7 percent, as rising prices for petroleum products, chemicals, and non-monetary gold had the largest impact. Over the past year, the index was down 6.9 percent. The indexes for capital goods and automotive vehicles, parts, and engines each edged up 0.1 percent in March. Over the past 12 months, the index for capital goods fell 1.3 percent, and the index for automotive vehicles, parts, and engines rose 0.6 percent.

Export prices for consumer goods were unchanged in March after falling 0.3 percent in February and 0.4 percent in January. For the year ended in March, the index was down 0.4 percent.

Imports by Locality of Origin

Import prices from Japan fell for the 14th time in the past 15 months, down 0.3 percent in March. Over the past 12 months, the index fell 3.8 percent. Import prices from the Asian Newly Industrialized Countries also fell, decreasing 0.2 percent for the third consecutive month. The index has not increased since December 2000 and was down 4.2 percent from March 2001 to March 2002.

In contrast, import prices from Latin America, Canada, and the European Union increased in March--led by double-digit gains for nonmanufactured goods. In March, import prices rose 3.7 percent from Latin America, 2.6 percent from Canada, and 0.2 percent from the European Union. Over the past 12 months, the Latin America index rose 4.5 percent, while prices from Canada and the European Union fell 2.4 percent and 0.2 percent, respectively.

Import and Export Services

The import air passenger price index declined for the second consecutive month, down 0.3 percent in March. For the past year, however, the index gained 2.0 percent. The export air passenger index also fell for the second straight month, falling 0.8 percent in March. Over the past 12 months, the index declined 2.1 percent.

The import price index for air freight was unchanged in the first quarter of 2002, after declining in each of the previous five quarters. For the year ended in March, the index fell 3.3 percent. The price index for export air freight decreased 2.6 percent from December 2001 to March 2002, after decreasing 0.7 percent in the fourth quarter of 2001. Over the past 12 months, the index was down 4.3 percent.