July 2002 U.S. Import and Export Price Indexes

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-JULY 2002-

The U.S. Import Price Index increased 0.4 percent in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase, the fourth in the past five months, was led by a rise in petroleum prices. The Export Price Index also rose in July, up 0.3 percent after posting no change in the previous two months.

Import Goods

Overall import prices resumed an upward trend in July, rising 0.4 percent after a decline of 0.3 percent in June. The increase was largely attributable to a rebound in petroleum prices, up 4.9 percent last month following a 4.8 percent decline in June. Imported petroleum prices have increased in six of the past seven months, jumping 47.4 percent from December to July. In contrast, the price index for nonpetroleum imports was unchanged in July, after little movement in the prior two months. Over the July 2001-2002 period, the nonpetroleum index fell 1.5 percent. Similarly, overall import prices were down 1.7 percent for the year ended in July.

With the exception of capital goods, the major nonpetroleum commodity indexes either rose or were unchanged in July. The index for foods, feeds, and beverages advanced 0.9 percent in July after decreasing 1.1 percent in June. Over the past year, this index was up 2.8 percent. Prices for nonpetroleum industrial supplies and materials also rose last month, edging up 0.1 percent in July, the fourth increase over the past five months. The small increase in July was led by rising prices for iron and steel mill products and for chemicals. For the year ended in July, however, the nonpetroleum industrial supplies and materials index declined 2.9 percent. Prices for consumer goods also increased 0.1 percent last month after a 0.2 percent decline in June. For the year ended in July, however, the index declined 1.1 percent. Prices for automotive vehicles, parts, and engines were unchanged in July and up 0.4 percent over the past 12 months.

In contrast, prices for capital goods resumed a downward trend, decreasing 0.4 percent in July. The index has increased only once in the past 16 months and was down 2.6 percent over the July 2001-2002 period. The decrease last month was largely attributable to the continued decline in prices for imported computer peripherals, accessories, and semiconductors.

Export Goods

Prices for overall exports rose 0.3 percent in July as both agricultural prices and nonagricultural prices advanced. The price index for agricultural exports increased for the second straight month, up 2.7 percent in July after gaining 1.2 percent in June. July’s rise - the largest since September 2000 - was led by higher prices for oilseeds, grains, and cotton. Agricultural export prices have risen in four of the past five months and were up 1.6 percent over the past year. The index for nonagricultural exports also posted an increase in July, up 0.2 percent. Over the past 12 months, however, the index decreased 0.9 percent. Overall export prices declined 0.7 percent during the same time period.

The price indexes for nonagricultural industrial supplies and materials and for consumer goods each increased in July, up 0.8 percent and 0.1 percent, respectively. Prices for nonagricultural industrial supplies and materials, which were unchanged over the year, have increased in each of the past five months. The increase in July was led by rising prices for chemicals, petroleum products, paper and paper base stocks, and nonmonetary gold. Despite edging up 0.1 percent in each of the past two months, the index for consumer goods prices was down 0.4 percent for the year.

In contrast, the price indexes for capital goods and for automotive vehicles, parts, and engines each dipped 0.1 percent in July. Capital goods have decreased for three consecutive months with lower prices for computer peripherals, accessories, and semiconductors having the largest impact. Over the past 12 months, prices for capital goods have dropped 1.6 percent. For the year ended in July, automotive vehicles parts and engines rose 0.3 percent.

Imports by Locality of Origin

Import prices from Japan and the Asian Newly Industrialized Countries were both unchanged in July. The index for imports from Japan increased only twice over the past 12 months, while the index for imports from the Asian Newly Industrialized Countries has not increased since December 2000. Both indexes were down 2.9 percent from July 2001 to July 2002.

For the fourth consecutive month, the index for imports from the European Union increased, up 1.4 percent in July. The increase last month was the largest recorded for this index since monthly publication began in October 1992. Over the past 12 months, the index rose 4.0 percent.

Led by rising prices for petroleum and petroleum products, import prices from Latin America and Canada each rose 1.2 percent in July. Both indexes have decreased only once since November 2001. For the year ended in July, import prices from Latin America increased 12.7 percent, while the index for Canada was up 4.4 percent.