August 2003 U.S. Import and Export Price Indexes

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- AUGUST 2003 -

The U.S. Import Price Index increased 0.2 percent in August, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The advance was attributable to a continued rise in petroleum prices, which more than offset a decline in prices for nonpetroleum imports. Export prices declined 0.1 percent in August after decreasing by the same amount in each of the two previous months.

Import Goods

The 0.2 percent rise in import prices in August followed increases of 0.5 percent in July and 0.8 percent in June. The increase continued to be led by higher prices for imported petroleum, which rose 3.9 percent. Petroleum prices were up 14.0 percent over the past three months and 13.6 percent for the year ended in August. Partially offsetting last month’s increase in petroleum prices, the price index for nonpetroleum imports fell 0.2 percent after having been flat in July and up 0.4 percent in June. For the August 2002-2003 period, nonpetroleum import prices were up 0.8 percent. Overall import prices rose 2.1 percent over the same period.

Most major components of nonpetroleum imports posted declines last month, led by a 0.6 percent decline in prices for nonpetroleum industrial supplies and materials. Decreasing natural gas prices more than offset increasing prices for imported metals, building materials, and paper. The price index for imported foods, feeds, and beverages declined 0.4 percent in August, led by lower prices for imported vegetables. Notwithstanding the August declines, the price indexes for nonpetroleum industrial supplies and materials and for food, feeds, and beverages were up over the past 12 months, increasing 6.7 percent and 4.4 percent, respectively.

Prices for imported consumer goods and capital goods decreased 0.2 percent and 0.1 percent, respectively, in August. The decline in consumer goods prices was the first decrease in six months; the index was down 0.3 percent for the year ended in August. Capital goods prices decreased 1.4 percent over the same period.

In contrast, prices for imported automotive vehicles rose 0.1 percent in August, resuming a recent trend of slight increases after declining 0.1 percent in July. For the past 12 months, the index was up 0.5 percent.

Export Goods

The 0.1 percent decline in overall export prices was led by a 1.5 percent decline in the price index for agricultural exports - the largest decline for this index in ten months. Decreasing prices for exported soybeans and corn contributed to the decline in agricultural prices, which had been unchanged in July. Despite the drop in August, the index was up 3.0 percent over the past 12 months. Prices for nonagricultural export prices were unchanged for the second consecutive month. For the year ended in August, nonagricultural export prices rose 0.8 percent and overall export prices were up 0.9 percent.

The export price indexes for consumer goods and for automotive vehicles both declined in August, decreasing 0.2 percent and 0.1 percent, respectively. Consumer goods prices edged up 0.3 percent in the three months prior to August and were up 0.1 percent for the year. The decrease in automotive vehicles prices followed increases of 0.2 percent and 0.1 percent in the previous two months. For the year ended in August, the index was up 0.6 percent. Capital goods prices remained unchanged last month, and were down 0.8 percent over the past 12 months.

In contrast, prices for nonagricultural industrial supplies and materials rose 0.3 percent in August, led primarily by increasing prices for exported fuel. For the year ended in August, the index was up 4.7 percent.

Imports by Locality of Origin

Import prices from the European Union were unchanged in August, as increasing petroleum prices offset the effects of the depreciating Euro against the value of the U.S. Dollar. The index had increased in each of the past two months and was up 2.3 percent for the year ended in August. Prices of imports from Japan also were unchanged last month. For the August 2002- 2003 period, the index was down 1.2 percent.

The price indexes for imports from Canada and Latin America both rose in August, up 0.4 percent and 0.6 percent, respectively. Led by higher raw materials prices, import prices from Canada were up for the third month in a row and increased 5.4 percent over the past 12 months. Import prices from Latin America also were up for the third consecutive month, led by higher petroleum prices. The index rose 2.5 percent for the year ended in August.

In contrast, prices for imports from the Asian Newly Industrialized Countries decreased 0.1 percent in August, led by lower prices for computer equipment and semiconductors. Over the past 12 months, the index fell 1.6 percent.

Import and Export Services

The import air passenger price index edged up 0.2 percent in August, after increasing 10.0 percent over the previous two months. For the year ended in August, the index was up 1.3 percent. Export air passengers fares were up for the sixth consecutive month, rising 3.4 percent in August. The index - which was up 10.2 percent over the past year - was led by increasing fares to the Asian region.