October 2002 U.S. Import and Export Price Indexes

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-OCTOBER 2002-

The U.S. Import Price Index increased 0.1 percent in October, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The small advance was attributable to a rise in petroleum prices. The Export Price Index was unchanged in October, after increasing in each of the previous three months.

Import Goods

Overall import prices, which have decreased only once in the first ten months of 2002, continued to be led by an upward trend in petroleum prices. Petroleum prices were up 1.1 percent in October after gaining 14.4 percent over the preceding three months. The petroleum index, which increased in nine of the past ten months, has advanced 64.8 percent since December 2001. In contrast, the price index for nonpetroleum imports dipped 0.1 percent in October, after modest increases in each of the past two months. Over the October 2001-2002 period, the nonpetroleum index declined 0.4 percent. Overall import prices rose 2.1 percent for the year ended in October.

The indexes for nonpetroleum industrial supplies and materials, automotive vehicles, and consumer goods each increased in October. Prices for nonpetroleum industrial supplies and materials rose 0.5 percent, led by rising prices for natural gas, industrial inorganic chemicals, and iron and steel mill products. Nonpetroleum industrial supplies and materials increased 2.6 percent over the past 12 months. Prices for automotive vehicles, parts, and engines rose for the second month in a row. The 0.3 percent advance in October was attributable to year-end model changeovers. For the year, the index increased 0.5 percent. Prices for consumer goods also increased in October, edging up 0.1 percent. Despite the recent gain, the index declined 0.8 percent over the past 12 months.

In contrast, the price indexes for capital goods and for foods, feeds, and beverages both fell in October, down 0.6 percent and 0.3 percent, respectively. Over the past 12 months, the index for capital goods has decreased 2.6 percent and posted only one monthly increase. Import prices for foods, feeds, and beverages, however, increased 5.5 percent over the past year.

Export Goods

Overall export prices were unchanged in October, as a downturn in agricultural prices was countered by a slight increase in nonagricultural prices. The index for agricultural exports reversed in October, decreasing 1.8 percent after gaining 9.3 percent over the previous four months. The turnaround last month was largely attributable to a decline in prices for corn and soybeans. For the year ended in October, agricultural prices rose 6.1 percent. The index for nonagricultural exports continued to record little movement, edging up 0.1 percent in October. Over the past 12 months, the index dipped 0.1 percent. Overall export prices gained 0.4 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 October. The decline—the fifth in the past six months—was led by falling prices for computers, computer parts, and semiconductors. Over the past 12 months, the index for capital goods fell 1.5 percent. The index for consumer goods was unchanged last month and down 0.5 percent for the year ended in October.

In contrast, prices for nonagricultural industrial supplies and materials and for automotive vehicles, parts, and engines both increased in October, up 0.5 percent and 0.1 percent, respectively. Rising prices for fuel oil, chemicals, and nonmonetary gold 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 October 2001-2002 period.

Imports by Locality of Origin

Import prices from Japan declined 0.2 percent for the second straight month. Over the past year, the index declined 2.8 percent.

The index for the Asian Newly Industrialized Countries declined 1.0 percent in October, the largest decline since July 2001. This index has not posted an increase since December 2000 and was down 3.3 percent for the year ended in October.

Import prices from the European Union also decreased in October, down 0.2 percent, the first decline since February. From October 2001 to October 2002 the index has increased 2.9 percent.

Led by rising prices for petroleum and petroleum products, import prices from Latin America and Canada increased in October, up 0.3 percent and 0.5 percent, respectively. For the year ended in October, import prices from Latin America increased 7.5 percent, while the index for Canada was up 5.4 percent.