September 2002 U.S. Import and Export Price Indexes

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-SEPTEMBER 2002-

The U.S. Import Price Index increased 0.7 percent in September, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was the sixth monthly gain in the past seven months. The Export Price Index also rose in September, up 0.2 percent for the second consecutive month after gaining 0.3 percent in July.

Import Goods

Overall import prices, which have decreased only once in the first nine months of 2002, continued upward in September, led primarily by higher petroleum prices. Petroleum prices were up 6.0 percent last month after gaining 2.8 percent in August and 3.8 percent in July. The petroleum index, which increased in eight of the past nine months, has advanced 61.1 percent since December 2001. The price index for nonpetroleum imports also rose in September, increasing 0.2 percent after no change in August. Over the September 2001-2002 period, however, the nonpetroleum index declined 0.8 percent. Similarly, overall import prices were down 0.4 percent for the year ended in September.

The indexes for foods, feeds, and beverages and nonpetroleum industrial supplies and materials both increased in September. Prices for foods, feeds, and beverages increased 2.7 percent last month, the largest increase since March 1997. The index has increased for three straight months and was up 5.1 percent for the year ended in September. Prices for nonpetroleum industrial supplies and materials, which have decreased only once since February, rose 0.5 percent in September. The increase last month was led by rising prices for iron and steel mill products and natural gas. Despite the recent gains, nonpetroleum industrial supplies and materials declined 0.5 percent over the past twelve months.

All of the finished goods indexes (capital goods, consumer goods, and automotive vehicles, parts, and engines) either decreased or posted no change in September. The indexes for capital goods and for consumer goods each declined 0.1 percent last month. For the year ended in September, the indexes fell 2.0 percent and 1.0 percent, respectively. The index for automotive vehicles, parts, and engines was unchanged in September and edged up 0.3 percent over the September 2001-2002 period.

Export Goods

Led by the continued rise in agricultural export prices, the index for overall exports rose 0.2 percent in September. Agricultural export prices increased for the fourth straight month, up 3.6 percent in September, the largest monthly increase since April 1996. The increase was largely attributable to the continued rise in prices for corn and wheat. For the year ended in September, agricultural prices rose 6.3 percent. The index for nonagricultural exports was unchanged for the second consecutive month. Over the past 12 months, the index for nonagricultural exports decreased 0.7 percent. Overall export prices declined 0.3 percent during the same time period.

The price index for capital goods, which accounts for almost 48 percent of overall exports, declined 0.2 percent in September. The decline, the fourth in the past 5 months, was led by falling prices for computers and computer parts. Over the past twelve months, the index for capital goods fell 1.7 percent. The index for consumer goods also declined last month, dipping 0.1 percent. For the year ended in September, prices for consumer goods were down 0.5 percent.

In contrast, prices for nonagricultural industrial supplies and materials and for automotive vehicles, parts, and engines both increased in September, up 0.2 percent and 0.1 percent, respectively. Rising prices for fuel oil had the largest impact on the nonagricultural industrial supplies and materials index. Prices for automotive vehicles, parts, and engines, which have declined only once since November 2001, were up 0.8 percent over the September 2001-2002 period.

Imports by Locality of Origin

Import prices from Japan dipped 0.1 percent in September after declining 0.2 percent in the previous month. Over the past year, the index declined 2.7 percent.

The index for the Asian Newly Industrialized Countries also declined last month, decreasing 0.2 percent. This index has not posted an increase since December 2000 and was down 2.9 percent for the year ended in September.

In contrast, for the sixth consecutive month, the index for imports from the European Union increased 0.3 percent in September. From September 2001 to September 2002, the index has increased 4.2 percent, paralleling a strengthening of the Euro versus the dollar over the past year.

Led by rising prices for petroleum and petroleum products, import prices from Latin America and Canada increased in September, up 2.2 percent and 0.9 percent, respectively. For the year ended in September, import prices from Latin America increased 16.8 percent, while the index for Canada was up 8.4 percent.

Import and Export Services

The import air passenger index decreased 2.2 percent in September after increasing in each of the previous five months. Despite the turnaround last month, the index was up 7.5 percent over the past year. Similarly, the export air passenger index also declined in September, down 6.7 percent, the first decline since March. For the September 2001 to 2002 period, the index was up 5.5 percent.

The import price index for air freight increased 1.5 percent in the third quarter of 2002, after gaining 3.1 percent in the second quarter. For the year ended in September, the index rose 5.5 percent. The price index for export air freight also increased in the third quarter, up 0.4 percent. Over the past twelve months, the index dipped 0.3 percent.