March 2003 U.S. Import and Export Price Indexes

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-MARCH 2003-

The U.S. Import Price Index increased 0.5 percent in March, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Rising prices for nonpetroleum imports more than offset a small decline in petroleum prices. The Export Price Index rose for the third consecutive month, up 0.3 percent in March.

Import Goods

Import prices rose a modest 0.5 percent in March after increasing 4.1 percent in the previous three months, an increase largely led by rising petroleum prices. For the year ended in March, overall import prices were up 6.7 percent. Prices for petroleum imports fell 1.8 percent in March after having risen 34.2 percent in the prior three months. Despite the March decline, the petroleum index was still up 52.5 percent over the past 12 months. In contrast, nonpetroleum prices rose 0.9 percent in March, the largest increase posted for this index since monthly publication began in December 1988. For the March 2002-March 2003 period, nonpetroleum import prices were up 2.4 percent.

A 5.0 percent increase in the price index for nonpetroleum industrial supplies and materials-led by rising natural gas prices-was the primary contributor to the increase in nonpetroleum import prices. Rising prices for paper and for products produced from petroleum and natural gas also contributed to the increase in nonpetroleum industrial supplies and materials. Over the past 12 months, the index was up 15.5 percent. Prices for imported foods, feeds, and beverages increased 1.3 percent in March and 7.5 percent over the past year.

Import prices for finished goods recorded little movement in March. The price indexes for imported automotive vehicles and for consumer goods both rose 0.1 percent in March. Over the past 12 months, automotive vehicle prices were up 0.6 percent while consumer goods prices fell 0.1 percent. Imported capital goods prices were unchanged last month and, despite little movement over the past five months, were down 1.3 percent for the year ended in March.

Export Goods

Export prices rose 0.3 percent in March following increases of 0.5 percent and 0.3 percent in the prior two months. For the year ended in March, export prices were up 2.2 percent. Agricultural export prices were unchanged as declining wheat prices offset higher prices for exported cotton. Over the past year, however, agricultural prices rose 9.2 percent. Nonagricultural prices continued to rise, increasing 0.3 percent in March after gains of 0.5 percent and 0.4 percent in February and January, respectively. For the year, the index was up 1.5 percent.

The increase in nonagricultural prices was led by a 1.5 percent increase in the price index for industrial supplies and materials. Prices for petroleum and petroleum-based products accounted for much of the advance. Industrial supplies and materials prices were up 9.4 percent for the year ended in March.

In contrast, the price indexes for capital goods and for automotive vehicles both decreased 0.1 percent in March. Capital goods prices were led by lower computer prices and were down 1.1 percent for the year ended in March. Automotive vehicle prices were up 0.4 percent over the 12- month period.

The index for exported consumer goods was unchanged last month and up 0.2 percent for the year ended in March.

Imports by Locality of Origin

The price indexes of imports from Japan and from the Asian Newly Industrialized Countries both declined 0.1 percent in March. For the March 2002-March 2003 period, prices for imports from Japan fell 1.3 percent, while prices for imports from the Asian Newly Industrialized Countries fell 2.3 percent.

Import prices from the European Union and from Latin America also fell in March, down 0.1 percent and 0.5 percent, respectively. Each index reversed an upward trend over the previous three months that was largely driven by higher petroleum prices. For the year ended in March, import prices of goods coming from the European Union were up 6.5 percent, while those coming from Latin America rose 12.2 percent.

In contrast, prices of imports from Canada increased for the fourth consecutive month, rising 1.3 percent in March. Over the past 12 months, the price of imports from Canada rose 9.3 percent.

Import and Export Services

The import air passenger price index increased 1.2 percent in March after declining 0.5 percent in the previous month. Over the past 12 months, the index rose 5.3 percent. The export air passenger price index also increased 1.2 percent in March after declining 3.1 percent in February. For the year ended in March, the index rose 11.2 percent.

The import price index for air freight increased for the fourth consecutive quarter, up 3.1 percent in March. Over the past year, the index was up 14.0 percent. The price index for export air freight was up 1.2 percent from December 2002 to March 2003, after decreasing 3.2 percent in the fourth quarter of 2002. For the year ended in March, the index was up 0.8 percent.