April 2003 U.S. Import and Export Price Indexes

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- APRIL 2003 -

The U.S. Import Price Index decreased 2.7 percent in April, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The decline, the first since last November, was driven by a substantial drop in prices for imported fuels. Export prices edged down 0.1 percent in April, after having risen in each of the previous three months.

Import Goods

Import prices declined 2.7 percent in April, the largest one-month drop for the index since monthly publication began in 1989. The decrease was led by a 16.2 percent decline in import petroleum prices, the largest monthly decrease since February 1991. Despite the decline, petroleum prices still were up 15.9 percent over the past 12 months. Also contributing to the April drop in import prices, the price index for nonpetroleum imports decreased 0.9 percent, the largest one-month decline for nonpetroleum import prices since July 2001. During the past year, however, import prices overall rose 2.3 percent.

The April decline in nonpetroleum import prices was led by a 5.0 percent decrease in the price index for nonpetroleum industrial supplies and materials. Natural gas prices-which had risen sharply in the first quarter of 2003-led the decline, although decreasing metals and chemicals prices also contributed. For the year ended in April, the price index for nonpetroleum industrial supplies and materials was up 6.7 percent. Prices for imported foods, feeds, and beverages declined 0.5 percent in April, led by decreasing vegetable prices. Despite the April decline, the index for foods, feeds, and beverages was up 6.1 percent over the past year.

Each of the price indexes for imported finished goods was unchanged in April, continuing the recent trend of little movement in those indexes. Over the past 12 months, however, prices for imported capital goods were down 1.5 percent. Consumer goods prices also declined over the past 12 months, decreasing 0.2 percent. Over the same period, prices for automotive vehicles were up 0.4 percent.

Export Goods

Export prices declined 0.1 percent in April after rising 1.1 percent over the previous three months. Declining prices last month for nonagricultural exports offset an advance in agricultural prices. The price index for nonagricultural exports declined 0.1 percent following a 1.3 percent increase over the prior three months. The index was up 1.2 percent over the April 2002-April 2003 period. In contrast, prices for agricultural exports rose 0.3 percent last month as higher prices for exported fruit, meat, and soybeans more than offset lower wheat prices. For the year ended in April, prices for agricultural exports rose 8.2 percent. Overall exports were up 1.6 percent over the same period.

A 0.4 percent decline for the price index of industrial supplies and materials was a primary contributor to the April decrease in nonagricultural export prices and was led by declining prices for export petroleum products and nonmonetary gold. Over the past 12 months, industrial supplies and materials prices were up 7.3 percent. Consumer goods prices also decreased in April, declining 0.3 percent. Over the past year, the index was up 0.2 percent.

In contrast, prices for exported capital goods edged up 0.1 percent in April. The increase was the third in the past four months, although capital goods prices were down 1.2 percent for the year ended in April. The price index for exported automotive vehicles also rose 0.1 percent in April and was up 0.9 percent over the past year.

Imports by Locality of Origin

Import prices from Japan declined 0.2 percent in April, the third decline in the past four months. For the year ended in April, import prices from Japan were down 1.6 percent.

Prices of imports from the Asian Newly Industrialized Countries rose 0.4 percent in April. The increase was the largest since October 1999, but the index was down 1.5 percent for the April 2002-April 2003 period.

The price indexes of imports from the European Union and Latin America both decreased in April, down 0.4 percent and 4.7 percent, respectively. The declines for each index were driven largely by decreasing petroleum prices. For the year ended in April, import prices from the European Union increased 5.1 percent and import prices from Latin America were up 4.5 percent.

Import prices from Canada decreased 2.9 percent in April, led by declining prices for both petroleum and natural gas. The index increased 5.4 percent over the past 12 months.