June 2002 U.S. Import and Export Price Indexes

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- JUNE 2002-

The U.S. Import Price Index decreased 0.6 percent in June, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decline was the first since December 2001 and was attributable to a turnaround in prices for imported petroleum, which declined 6.6 percent in June. Import prices excluding petroleum increased 0.1 percent. The Export Price Index was unchanged in June, after decreasing 0.1 percent in May.

Import Goods

The drop in the price index for imported petroleum was the first decline in this component since December 2001; during the first five months of 2002, the index had jumped 47.1 percent. For the 12 months ended in June, however, petroleum prices were down 7.9 percent. The June increase in the price index for nonpetroleum imports was the third rise over the past four months. For the year ended in June, however, the index was down 2.6 percent.

Most of the major nonpetroleum commodity indexes either registered small increases or were unchanged in June. The index for automotive vehicles, parts, and engines advanced 0.2 percent in June after decreasing the same amount in May. Over the past year, this index was up 0.3 percent. Prices for nonpetroleum industrial supplies and materials also rose last month, edging up 0.1 percent after decreasing 0.2 percent in May. The small increase in June was led by rising prices for iron and steel mill products, plastics, and rubber. For the year ended in June, the nonpetroleum industrial supplies and materials index declined 7.0 percent. Prices for consumer goods and capital goods were both unchanged in June. Over the June 2001-2002 period, these indexes decreased 1.2 percent and 2.7 percent, respectively.

In contrast, prices for foods, feeds, and beverages decreased 0.3 percent in June, after increasing in each of the previous three months. The decrease last month was largely attributable to a decline in prices for imported vegetables. Over the past 12 months, prices for foods, feeds, and beverages rose 1.6 percent.

Export Goods

Prices for overall exports were unchanged in June as an upturn in agricultural prices was countered by a modest decline in nonagricultural prices. Over the June 2001-June 2002 period, the index for overall exports declined 1.5 percent. The price index for agricultural exports resumed an upward trend in June, rising 1.1 percent after dipping 0.1 percent in May. Last month’s rise was led by higher prices for soybeans, corn, and wheat. Despite increasing in three of the past four months, the index for agricultural exports dipped 0.2 percent over the past year. The index for nonagricultural exports posted a 0.1 percent decrease in June, the first decline since January. Over the past 12 months, the index decreased 1.6 percent.

The capital goods index, which makes up almost half of all exports, decreased 0.6 percent in June after declining 0.2 percent in May. Lower prices for computer peripherals, accessories, and semi-conductors continued to lead the decline. Over the past 12 months, prices for capital goods have dropped 1.7 percent.

In contrast, the price indexes for nonagricultural industrial supplies and materials and consumer goods each increased in June, up 0.7 percent and 0.1 percent, respectively. Prices for nonagricultural industrial supplies and materials, which were down 2.6 percent for the year, have turned around over the past four months. The increase in June was led by rising prices for wood pulp and recovered paper, industrial organic chemicals, and nonmonetary gold. Despite the June rise, the index for consumer goods prices, which had not increased since December 2001, was down 0.5 percent for the year.

The automotive vehicles, parts, and engines index was unchanged in June. Over the past 12 months, the index was up 0.6 percent.

Imports by Locality of Origin

Import prices from Japan increased 0.1 percent in June, the first monthly increase recorded for this series since June 2001. The index was down 3.1 percent from June 2001 to June 2002.

For the third consecutive month, the index for imports from the European Union increased, up 0.6 percent in June and 1.5 percent for the second quarter. Over the past 12 months, the index rose 1.2 percent.

In contrast, import prices from the Asian Newly Industrialized Countries decreased 0.2 percent for the third straight month. This index, which has not increased since December 2000, was down 3.8 percent for the year ended in June.

Led by falling prices for petroleum and petroleum products, import prices from Latin America and Canada also fell in June, down 2.3 percent and 1.2 percent, respectively. Import prices from Latin America had increased in each of the previous six months and were up 9.8 percent for the year, while the index for Canada was down 0.7 percent over the past year.

Import and Export Services

The import air passenger index increased for the third consecutive month, up 5.6 percent in June. Over the past 12 months, the index gained 5.2 percent. The export air passenger index was unchanged in June after increasing 5.1 percent in May and 0.7 percent in April. Over the June 2001-2002 period, the index increased 2.8 percent.

The import price index for air freight increased 2.7 percent in the second quarter of 2002, after gaining 1.2 percent in the first quarter. For the year ended in June, the index rose 3.4 percent. The price index for export air freight also increased in the second quarter, up 2.6 percent. Over the past 12 months, the index dipped 0.4 percent.