October 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.

- OCTOBER 2003 -

The U.S. Import Price Index rose 0.1 percent in October, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. A rise in the price index for imported petroleum more than offset a 0.1 percent decline in nonpetroleum prices. Export prices increased 0.3 percent in October, with increases in prices for both agricultural and nonagricultural exports.

Import Goods

The index for overall import prices rose 0.1 percent last month after declining 0.4 percent in September. The overall trend in import prices continued to be driven by the price index for petroleum imports, which was up 2.3 percent in October following a 5.0 percent decrease in September. Over the past 12 months, petroleum prices increased 3.4 percent. In contrast, nonpetroleum import prices declined 0.1 percent in October after increasing 0.2 percent in September; despite the decline however, the index was up 0.7 percent for the year ended in October. Overall import prices were up 0.9 percent over the same 12-month period.

The decline in nonpetroleum import prices in October was led by a 0.5 percent decrease in prices for imported capital goods, the largest decline in this component since October 2002. Lower prices for computer peripherals and telecommunications equipment contributed to the decline in capital goods prices in October, which were down 1.1 percent for the year ended in October. The price indexes for nonpetroleum industrial supplies and materials and for consumer goods also contributed to the October decrease in nonpetroleum prices, falling 0.2 percent and 0.1 percent, respectively. Over the past 12 months, nonpetroleum industrial supplies and materials prices were up 5.9 percent, while consumer goods prices fell 0.3 percent.

In contrast, prices for automotive vehicles, parts, and engines were up 0.6 percent, the largest increase for this index since April 1995. The increase was attributable to year-end model changeovers and the recent drop in the value of the U.S. dollar. For the year ended in October, automotive vehicle, parts, and engines prices rose 0.4 percent. The price index for foods, feeds, and beverages rose 0.1 percent in October and was up 1.7 percent over the past 12 months.

Export Goods

Overall export prices increased 0.3 percent in October, following a 0.4 percent rise in September. The advance was again led by higher agricultural prices, which were up 2.5 percent in October after rising 5.6 percent in the previous month. Agricultural export prices have risen 10.5 percent during the past 12 months. Higher prices for soybeans, meat, and cotton all contributed to the October increase. The price index for nonagricultural exports rose 0.1 percent in October after declining the same amount in September. Over the past year, the index was up 0.6 percent. Prices for overall exports were up 1.4 percent over the October 2002-2003 period.

The price indexes for nonagricultural industrial supplies and materials, for automotive vehicles, parts, and engines, and for consumer goods each increased in October. Prices for nonagricultural industrial supplies and materials were up 0.6 percent, led by higher prices for precious metals, paper, and chemicals. The index was up 4.3 percent for the year ended in October. The price indexes for automotive vehicles, parts, and engines and for consumer goods each rose 0.2 percent last month and were up 0.5 percent and 0.3 percent, respectively, over the past year.

The price index for capital goods was the only major nonagricultural commodity price index to decrease in October. Capital goods prices, which fell 0.1 percent for the second consecutive month, were down 0.8 percent for the year ended in October.

Imports by Locality of Origin

Import prices from Japan rose 0.1 percent in October. In contrast, import prices from the Asian Newly Industrialized Countries were down 0.3 percent last month, the third consecutive decline for this index. Over the past 12 months, prices for imports from Japan were down 1.0 percent and prices for imports from the Asian Newly Industrialized Countries declined 0.7 percent.

The price indexes for imports from the European Union and from Latin America each rose in October after decreasing the previous month. Import prices from the European Union were up 0.5 percent for the month and 2.4 percent over the past year. Import prices from Latin America were up 1.2 percent last month and 1.4 percent for the year ended in October. Prices for imports from Canada rose for the second consecutive month, up 0.1 percent in October after rising 0.4 percent in September. The index was up 4.2 percent over the past 12 months.

Import and Export Services

The price index for import air passenger fares declined 9.1 percent in October, the largest one-month decline in this index since monthly publication began in January 2001. For the year ended in October, the index was down 1.4 percent. In contrast, prices for export air passenger fares increased 1.8 percent last month after having declined 7.6 percent in September. Export air passenger fares were up 15.1 percent over the past 12 months.

ANNOUNCEMENT OF CHANGES IN THE U.S. IMPORT AND EXPORT PRICE INDEXES

Beginning with the release of January 2004 data on February 13, the U.S. Import and Export Price Indexes will be reweighted using 2002 trade weights. This will be a change to the previous practice of updating the weights every five years. Import and export price indexes will now be reweighted annually, with a two-year lag in the weights. The index reference base will remain fixed at calendar year 2000=100. In addition, the U.S. carrier and foreign carrier air passenger fares indexes found in Table 11 will be replaced with indexes that measure prices for inbound and outbound flights.