November 2002 U.S. Import and Export Price Indexes

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-NOVEMBER 2002-

The U.S. Import Price Index decreased 1.0 percent in November, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decline was attributable to falling petroleum prices. The Export Price Index rose 0.1 percent in November, after decreasing the same amount in the previous month.

Import Goods

Led by a decline in petroleum prices, the index for all imports fell 1.0 percent in November - the first monthly decline since June and the second decrease in 2002. The petroleum index, which had increased in 9 of the previous 10 months, declined 10.0 percent in November. Last month’s decrease was the largest since the index dropped 13.1 percent in November 2001. The petroleum index rose 37.5 percent from November 2001 to November 2002. In contrast, the price index for nonpetroleum imports edged up 0.1 percent in November, after dipping 0.1 percent in October. Over the past 12 months, the nonpetroleum index declined 0.1 percent. Overall import prices rose 2.4 percent for the year ended in November.

Among nonpetroleum imports, the indexes for nonpetroleum industrial supplies and materials and for foods, feeds, and beverages continued to increase. Prices for nonpetroleum industrial supplies and materials rose 0.3 percent in November, led by rising prices for natural gas and unfinished metals. Over the past 12 months, the index for nonpetroleum industrial supplies and materials rose 3.9 percent. Prices for foods, feeds, and beverages increased 0.8 percent last month and 5.9 percent for the year ended in November.

In contrast, all of the indexes for imported finished goods were either unchanged or declined slightly in November. The price index for capital goods was unchanged last month, after decreasing in each of the previous two months, and was down 2.6 percent for the year. The indexes for automotive vehicles and for consumer goods each decreased 0.1 percent in November. Over the past 12 months, the autos index rose 0.5 percent, while the index for consumer goods was down 0.8 percent.

Export Goods

Overall export prices increased 0.1 percent in November, as an upturn in agricultural prices outweighed a decrease in nonagricultural prices. Led by rising soybean prices, the index for agricultural exports resumed an upward trend, gaining 2.2 percent in November - the fifth increase in the past six months. For the year ended in November, agricultural prices rose 9.9 percent. The index for nonagricultural exports continued to record little movement, declining 0.1 percent in November. Over the past 12 months, the index increased 0.3 percent. Overall export prices gained 1.0 percent during the same time period.

The small downward movement in prices for nonagricultural exports last month was largely attributable to falling prices for industrial supplies and materials. Led by price declines for petroleum and petroleum products, the index for nonagricultural industrial supplies and materials declined 0.5 percent in November, after increasing the same amount in each of the previous two months. The index for nonagricultural industrial supplies and materials increased 3.8 percent for the year. The index for consumer goods also edged lower in November, decreasing 0.1 percent, and decreased 0.5 percent over the past 12 months.

In contrast, the indexes for capital goods and for automotive vehicles, parts, and engines both edged up 0.1 percent in November. The capital goods index, which makes up almost 48 percent of overall exports, had not increased since April 2002 and was down 1.3 percent over the past 12 months. Prices for automotive vehicles, parts, and engines, which have declined only once since November 2001, were up 1.0 percent over the November 2001-2002 period.

Imports by Locality of Origin

Import prices from Japan declined 0.2 percent for the third straight month. Over the past year, the index declined 2.7 percent.

After posting increases or no change in eight of the first nine months of 2002, import prices from the European Union declined for the second consecutive month, down 0.5 percent in November. From November 2001 to November 2002, the index increased 2.8 percent.

Led by falling prices for petroleum and petroleum products, import prices from Latin America and Canada decreased in November, down 2.0 percent and 1.5 percent, respectively. Despite the recent declines, import prices from Latin America increased 6.6 percent for the year ended in November, and the index for Canada was up 3.8 percent over the same period.

In contrast, the index for the Asian Newly Industrialized Countries rebounded in November, rising 0.2 percent after declining 1.0 percent in October. This index had not posted an increase since December 2000 and was down 3.1 percent for the year ended in November.