January 2003 U.S. Import and Export Price Indexes

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-JANUARY 2003-

The U.S. Import Price Index increased 1.5 percent in January, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase followed a 0.6 percent rise in December, and was primarily attributable to a continued rise in petroleum prices. In January, the Export Price Index increased 0.4 percent after declining 0.2 percent in December.

Import Goods

The 1.5 percent increase in overall import prices last month was the largest advance since the index rose 1.6 percent in April 2002. Over the past 12 months, the index increased 5.5 percent. The January increase was led by rising prices for imported petroleum, which rose 12.4 percent after a 6.2 percent increase in December. Petroleum prices jumped 68.6 percent from January 2002 to January 2003, and are at the highest level since November 2000. The price index of nonpetroleum imports was up 0.2 percent for the second consecutive month in January, and 0.6 percent over the past year.

The rise in nonpetroleum prices was led by a 1.4 percent advance in the price index for nonpetroleum industrial supplies and materials, an increase that was largely attributable to rising natural gas prices. Over the past year, the index for nonpetroleum industrial supplies and materials was up 6.9 percent, again primarily due to higher prices for natural gas. Increases in the price indexes for consumer goods and foods, feeds, and beverages—up 0.2 percent and 0.7 percent, respectively—also contributed to the increase in nonpetroleum import prices last month. For the year ended in January, prices for imported consumer goods were down 0.5 percent, while foods, feeds, and beverages prices rose 5.3 percent.

In contrast, import capital goods prices fell 0.1 percent in January, led by declining prices for computers, peripherals, and semiconductors. The capital goods price index has declined in each of the past five months and was down 2.1 percent for the year ended in January. Prices for imported automotive vehicles also fell last month, decreasing 0.2 percent. Despite the January decline, the automotive vehicle price index was up 0.5 percent over the past 12 months.

Export Goods

The 0.4 percent increase in overall export prices in January was the largest increase in this index since April 2002. During the 12 months ended in January, export prices were up 1.5 percent. Both agricultural and nonagricultural export prices contributed to last month’s increase in export prices. Nonagricultural export prices rose 0.4 percent last month following a 0.2 percent decline in December. From January 2002 to January 2003, nonagricultural export prices were up 1.0 percent. The price index for agricultural exports rose 0.3 percent in January after falling 0.6 percent in December. Over the past 12 months, agricultural prices were up 7.4 percent.

The price increases for nonagricultural industrial supplies and materials led the rise in nonagricultural export prices, and were primarily attributable to price increases for petroleum and petroleum-based products. For the year ended in January, nonagricultural industrial supplies and materials prices were up 5.8 percent. A 0.3 percent increase in the price index for export capital goods also contributed to the increase in overall nonagricultural export prices. The price index for exported capital goods had not posted a monthly increase since a 0.1 percent rise in April 2002, and was down 0.7 percent over the past year.

Both the export price indexes for consumer goods and automotive vehicles were unchanged in January. Prices for consumer goods fell 0.2 percent for the year ended in January. Over the same time period the index for automotive vehicle prices was up 0.7 percent.

Imports by Locality of Origin

Import prices from Japan were unchanged for the second consecutive month. The index had declined 1.0 percent over the four months prior to December and was down 1.9 percent for the year ended in January.

The price index for imports from the Asian Newly Industrialized Countries edged down 0.1 percent in January after falling 0.3 percent in December. Over the past 12 months, the index was down 2.5 percent.

In contrast, import prices from the European Union were up 0.7 percent last month following a 0.5 percent rise in December. The increase paralleled the continued appreciation of the Euro as well as higher fuel prices. The index rose 4.2 percent over the past year.

Prices of imports from Latin America and Canada—attributable to rising petroleum prices—rose 2.1 percent and 1.9 percent, respectively. For the year ended in December, prices of imports from Latin America were up 11.1 percent while the price index for imports from Canada rose 7.9 percent.