September 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.

- SEPTEMBER 2003 -

The U.S. Import Price Index declined 0.5 percent in September, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Lower petroleum prices led the decline in overall import prices. Export prices were up 0.4 percent in September, the first increase for this index since May.

Import Goods

Overall import prices fell 0.5 percent in September after increasing in each of the previous three months. Declining petroleum prices more than offset higher prices for nonpetroleum imports. The price index for imported petroleum decreased 5.2 percent in September but was up 1.2 percent over the past year. In contrast, nonpetroleum import prices rose 0.2 percent last month and were up 0.9 percent for the year ended in September. The price index for overall import prices was up 0.8 percent over the past 12 months.

A 1.4 percent increase in the price index for nonpetroleum industrial supplies & materials led the September rise in nonpetroleum prices. Higher lumber and natural gas prices contributed to the increase. For the year ended in September, the price index for nonpetroleum industrial supplies & materials was up 6.8 percent. Prices for foods, feeds, & beverages imports rose 0.6 percent in September, attributable to higher prices for imported meat and coffee. Over the past year, the price index for imported foods, feeds, & beverages increased 2.3 percent.

In contrast, the price indexes for imported capital goods and automotive vehicles both fell in September, declining 0.3 percent and 0.1 percent, respectively. The decrease in capital goods prices followed a similar decline of 0.2 percent in August. For the September 2002-2003 period, the index was down 1.3 percent. The price index for automotive vehicles imports was up 0.2 percent over the same period.

Import prices for consumer goods were unchanged in September and down 0.2 percent over the past 12 months.

Export Goods

The September rise in overall export prices was led by a 5.5 percent advance in the price index for agricultural exports--the largest one-month increase for this index since monthly publication began in 1989. Higher prices for exported meat, corn, and soybeans contributed to the increase in agricultural prices. Over the past 12 months, the index was up 5.7 percent. Nonagricultural export prices fell 0.1 percent in September, resuming the recent trend of declining prices after edging up 0.1 percent in August. Despite the recent trend, the index was up 0.6 percent for the year ended in September. Overall export prices were up 1.0 percent over the same period.

The decline in nonagricultural export prices was driven by a 0.2 percent drop in the price index for capital goods exports, which accounts for nearly 47 percent of overall exports. Declining prices for computer peripherals and semiconductors led the September decrease in capital goods prices. Over the past 12 months, the index was down 0.9 percent.

Partially offsetting the decrease in capital goods prices, the price indexes for both nonagricultural industrial supplies & materials and consumer goods rose in September--up 0.2 percent and 0.1 percent, respectively. For the year ended in September, prices for nonagricultural industrial supplies & materials were up 4.3 percent and prices for consumer goods were up 0.2 percent.

The price index for automotive vehicles was unchanged in September and up 0.7 percent over the past year.

Imports by Locality of Origin

Prices for imported Japanese goods continued to fall last month, declining 0.3 percent following a 0.1 percent drop the previous month. Prices for imports from the Asian Newly Industrialized countries also continued to move lower in September, decreasing 0.1 percent for the second consecutive month. Over the past 12 months, both indexes were down 1.3 percent.

Import prices from the European Union and Latin America both declined in September, falling 0.3 percent and 0.1 percent, respectively. Prices for imports from the European Union--up 1.8 percent over the past 12 months--and for imports from Latin America--up 1.2 percent over the same period--each were down for the first time since May.

Prices for imports from Canada declined 0.2 percent in September, but import prices from Canada were up 4.0 percent for the year ended in September.

Import and Export Services

The price indexes for both import and export air passenger fares declined in September, reversing the recent trend in each index. The decreases were attributable primarily to seasonal factors. Import air passenger fares were down 2.9 percent in September, the first decline since May. The index was up 0.6 percent over the past 12 months. The price index for export air passenger fares decreased 7.6 percent in September, the first monthly drop since February. Notwithstanding the September decline, export air passenger fares were up 9.2 percent for the past year.

The import price index for air freight increased 5.4 percent for the third quarter of 2003. Import air freight prices have increased in each of the past four quarters and were up 16.1 percent over the past year. In contrast, prices for export air freight fell 0.1 percent over the past three months and were down 3.3 percent for the year ended in September.