May 2002 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.

-MAY 2002-

The U.S. Import Price Index was unchanged in May, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The index increased 1.6 percent in April and 1.3 percent in March. The Export Price Index decreased 0.1 percent in May, after increasing in April and March by 0.4 percent and 0.3 percent, respectively.

Import Goods

The import price index in May was unchanged due to a modest rise in petroleum prices coupled with a slight decline in nonpetroleum prices. The petroleum index, which had posted double-digit increases over the previous two months, increased a modest 0.9 percent in May. Since December, the index has increased 46.1 percent. For the 12 months ended in May, however, petroleum prices were down 3.1 percent. Prices for nonpetroleum imports resumed a downward trend in May, decreasing 0.1 percent after rising 0.6 percent in April. April marked the only advance in nonpetroleum prices during the past 16 months. The index was down 3.0 percent for the year ended in May.

Most of the major nonpetroleum commodity indexes either decreased or posted no change in May. The index for automotive vehicles, parts, and engines declined 0.3 percent in May after increasing 0.2 percent in April. The decrease last month was the largest since December 1992. Prices for capital goods and nonpetroleum industrial supplies and materials also fell last month; both were down 0.1 percent after increasing in April. For the year ended in May, the indexes declined 2.7 percent and 7.9 percent, respectively. Prices for consumer goods were unchanged in May, as declines for manufactured goods were countered by a seasonal price increase for nursery stock and cut flowers. The imported consumer goods index, which had decreased in each of the previous three months, was down 1.4 percent over the May 2001-2002 period.

In contrast, prices for foods, feeds, and beverages, up 1.3 percent in May, rose for the third consecutive month. The increase was largely attributable to a rise in prices for imported vegetables. Prices for foods, feeds, and beverages edged up 0.4 percent over the past 12 months.

Export Goods

Prices for overall exports were down 0.1 percent in May and 1.7 percent over the past 12 months. The small decline in May was primarily attributable to a downturn in agricultural prices. The price index for agricultural exports fell 0.4 percent in May, as the prices for vegetables and wheat fell in May after rising in April. Over the past 12 months, agricultural prices fell 1.5 percent. Nonagricultural export prices were unchanged in May after increasing 0.3 percent in each of the previous two months. The index decreased, however, 1.7 percent over the May 2001-May 2002 period.

The capital goods index, which makes up almost half of all exports, decreased 0.2 percent in May with falling prices for computer peripherals, accessories, and semi-conductors leading the decline. Over the past 12 months, prices for capital goods were down 1.2 percent.

In contrast, the price indexes for nonagricultural industrial supplies and materials and automotive vehicles, parts, and engines each increased in May, up 0.2 percent and 0.1 percent, respectively. Prices for nonagricultural industrial supplies and materials, which were down 4.1 percent for the year, have turned around over the past three months-led by rising prices for plastics, wood pulp and recovered paper, and industrial organic chemicals. Prices for automotive vehicles, parts, and engines rose modestly in five of the past six months and were up 0.4 percent for the year.

The consumer goods index was unchanged in May after decreasing 0.4 percent in April. Over the past 12 months, the index was down 0.7 percent.

Imports by Locality of Origin

Import prices from Japan decreased 0.1 percent in May, the same as in April. The index has declined for 11 consecutive months and was down 3.1 percent over the year.

Import prices from the Asian Newly Industrialized Countries resumed a downward trend in May, decreasing 0.5 percent after edging up 0.1 percent in April-the first increase since December 2000. From May 2001 to May 2002, the index fell 3.8 percent.

In contrast, import prices from Latin America and the European Union rose in May, up 1.5 percent and 0.3 percent, respectively. Import prices from Latin America have increased for six straight months and were up 11.2 percent for the year, while the index for the European Union was up 0.6 percent over the past 12 months.

The index for imports from Canada was unchanged in May, after increasing in each of the previous five months. Despite the recent upturn, the index posted a slight decrease of 0.3 percent for the year.