December 2002 U.S. Import and Export Price Indexes

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

-DECEMBER 2002-

The U.S. Import Price Index increased 0.7 percent in December, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was largely attributable to an upturn in petroleum prices. The Export Price Index decreased 0.2 percent in December, after increasing 0.1 percent in the previous month.

From December 2001 to December 2002, import prices rose 4.2 percent. The increase over the past year was led by a surge in petroleum prices. During the same period, export prices were up 1.0 percent.

Import Goods

The index for imports, which recorded only two monthly decreases in 2002, resumed an upward trend in December. Led by volatile petroleum prices, overall import prices rose 0.7 percent last month after falling 1.0 percent in November. The petroleum index, which had decreased in the previous two months, rose 7.4 percent in December. Last month’s increase was the largest since the index rose 12.7 percent in April. The petroleum index rose 57.9 percent from December 2001 to December 2002 after falling 39.5 percent during the previous calendar year. The price index for nonpetroleum imports also increased in December, edging up 0.1 percent after dipping the same amount in November. Over the past 12 months, the nonpetroleum index rose 0.2 percent after dropping 4.5 percent in 2001.

Among nonpetroleum imports, the indexes for nonpetroleum industrial supplies and materials, for foods, feeds, and beverages, for automotive vehicles parts and engines, and for consumer goods each increased in December. Prices for nonpetroleum industrial supplies and materials, which have increased in six of the past seven months, rose 0.3 percent for the second straight month—led by continued rises in prices for natural gas and unfinished metals. Over the past 12 months, the index for nonpetroleum industrial supplies and materials rose 5.6 percent. Prices for foods, feeds, and beverages increased 0.5 percent last month and 6.2 percent for the year ended in December. The index had decreased on an annual basis in each of the previous four years. The indexes for automotive vehicles, parts, and engines and for consumer goods both increased 0.1 percent in December. Over the past year, auto prices rose 0.5 percent and consumer goods fell 0.7 percent.

In contrast, the index for imported capital goods dipped 0.1 percent for the second straight month. The index for capital goods has increased only once since March 2001 and was down 2.5 percent for the year—the seventh consecutive annual decline for this index.

Export Goods

Export prices decreased 0.2 percent in December, as both agricultural prices and nonagricultural prices fell last month. Led by a downturn for both wheat and corn, the index for agricultural exports fell 0.6 percent in December. For the year ended in December, however, agricultural prices increased 7.9 percent—the largest annual increase since 1995. The index for nonagricultural exports continued to record little movement, declining 0.1 percent for the second straight month. Over the past 12 months, the index increased 0.5 percent.

The small downward movement in prices for nonagricultural exports last month was attributable to falling prices for industrial supplies and materials and for capital goods. The index for nonagricultural industrial supplies and materials declined for the second consecutive month, down 0.3 percent in December. Despite the recent declines, the index rose 4.7 percent over the December 2001-2002 period. Prices for capital goods continued a downward trend, declining 0.1 percent in December and 1.2 percent for the year. The price index for consumer goods, which was unchanged in December, also decreased for the year, down 0.6 percent.

In contrast, the index for automotive vehicles, parts, and engines edged up 0.1 percent in December. Prices for automotive vehicles, parts, and engines, which have declined only once in the past 12 months, were up 0.9 percent for the year.

Summary of December-to-December percent changes

Imports by Locality of Origin

Import prices from Japan were unchanged in December after declining in each of the previous four months. Over the past year, the index declined 2.5 percent.

The index for the Asian Newly Industrialized Countries resumed a downward trend in December, falling 0.4 percent after a modest rise of 0.2 percent in November. Before November, this index had not increased since December 2000 and was down 2.6 percent for the year after dropping 5.5 percent in 2001.

In contrast, import prices from the European Union were up 0.5 percent in December, after decreasing in the previous two months. The index had posted increases or no change in eight of the first nine months of the year, and rose 3.6 percent from December 2001 to December 2002.

Led by the upturn in petroleum prices, prices from Latin America and Canada increased in December, up 1.6 percent and 0.5 percent, respectively. Import prices from Latin America increased 8.8 percent for the year ended in December and the index for Canada was up 7.1 percent over the same period.

Import and Export Services

The import air passenger index increased 1.5 percent in December after decreasing in each of the previous three months. Over the past year, the index advanced 1.4 percent. Export air passenger fares also increased last month after three consecutive monthly declines, rising 0.1 percent in December. The index rose 4.9 percent for the year.

The import price index for air freight rose in each quarter of 2002, up 5.2 percent from September to December. For the year ended in December, the index rose 11.4 percent. In contrast, the price index for export air freight declined 5.0 percent in the fourth quarter. For the December 2001 to December 2002 period, the index declined 4.6 percent.