June 2003 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.

- JUNE 2003 -

The U.S. Import Price Index increased 0.8 percent in June, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Increases in both petroleum and nonpetroleum import prices contributed to the rise. Export prices fell 0.2 percent in June, after edging up 0.1 percent in May.

Import Goods

Import prices advanced 0.8 percent in June after declining the same amount in May. All of the major imported goods components posted increases last month. The petroleum index rose 4.7 percent in June after falling 5.4 percent in May and 18.7 percent in April. The price index for nonpetroleum imports also recorded a turnaround in June, increasing 0.5 percent after falling 0.3 percent in May and 1.0 percent in April. During the past year, overall import prices rose 2.0 percent.

The June increase in nonpetroleum import prices was led by a 1.4 percent increase in prices for nonpetroleum industrial supplies and materials. Rising natural gas prices and a rebound in prices for unfinished metals led the increase in the nonpetroleum industrial supplies and materials price index. For the year ended in June, nonpetroleum import prices were up 1.1 percent.

Similarly, the prices for all major finished goods indexes were up in June—each increasing 0.2 percent—paralleling the appreciation of European and Canadian currencies against the U.S. dollar. The increase in the price index for capital goods was led by prices for electric generating equipment and for industrial machines. For the year ended in June, however, the index was down 1.6 percent. Prices for imported automotive vehicles, parts, and engines increased for the second month in a row and were up 0.7 percent over the June 2002-2003 period. Consumer goods prices posted the first increase since December, but were unchanged over the past 12 months.

Prices for foods, feeds, and beverages also increased in June, up 0.4 percent after falling 1.1 percent in May. Over the past 12 months, the index was up 5.8 percent.

Export Goods

Both major components of exports contributed to the June decline, as prices for agricultural and nonagricultural imports fell 0.8 percent and 0.1 percent, respectively. Corn, wheat, and soybean prices all contributed to the June downturn in agricultural export prices. For the year ended in June, however, the index increased 9.0 percent. Prices for nonagricultural exports declined as higher prices for industrial supplies and materials, for automotive vehicles, and for consumer goods were more than offset by a decrease in prices for capital goods, which account for nearly one-half of U.S. exports. Over the June 2002-2003 period, prices for nonagricultural exports rose 0.9 percent. Overall export prices were up 1.5 percent over the same period.

A 0.5 percent upturn in the price index for industrial supplies and materials was led by turnarounds in export petroleum products, nonmonetary gold, and other precious metals. Over the past 12 months, industrial supplies and materials prices were up 5.6 percent. Prices for automotive vehicles edged up 0.2 percent in June and were up 0.8 percent over the past 12 months. Export consumer prices were up 0.4 percent in June and 0.7 percent over the past year.

In contrast, export capital goods prices decreased in June, falling 0.6 percent. Computers and semiconductors led the decline. Over the June 2002- 2003 period, the index was down 1.0 percent.

Imports by Locality of Origin

The price index for imports from the European Union was up 1.1 percent, corresponding with the appreciation of the Euro against the U.S. dollar. Over the past 12 months, the index was up 3.6 percent. Prices for imports from Latin America and Canada also were up appreciably in June, increasing 1.7 percent and 0.9 percent, respectively. For the year ended in June, the indexes rose 4.7 percent and 5.2 percent, respectively. Import prices from Japan edged up 0.2 percent in June, after dipping 0.1 percent in May. For the year ended in June, import prices from Japan were down 1.2 percent.

In contrast, prices of imports from the Asian Newly Industrialized Countries declined 0.1 percent in June after falling the same amount in May. The index was down 1.4 percent for the June 2002-June 2003 period.

Import and Export Services

The import air passenger price index increased 3.9 percent in June, after edging down 0.2 percent in May. Over the past 12 months, the index rose 2.7 percent. The export air passenger price index also increased in June, rising 2.6 percent following a 4.7 percent increase in May. For the year ended in June, the index was up 13.4 percent.

The import price index for air freight increased 1.2 percent in the second quarter of 2003. The index has increased for five consecutive quarters and was up 11.8 percent over the past 12 months. In contrast, the price index for export air freight declined 1.1 percent over the March-June 2003 period. For the year ended in June, the index was down 2.8 percent.