November 2003 U.S. Import and Export Price Indexes

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- NOVEMBER 2003 -

The U.S. Import Price Index increased 0.4 percent in November, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. A rise in the price indexes for both petroleum and nonpetroleum imports contributed to the increase. Export prices advanced for the third consecutive month, rising 0.5 percent.

Import Goods

The price index for imports rose 0.4 percent in November, as prices for every major category of import goods either increased or posted no change. Import petroleum prices were up 1.1 percent last month, after rising 1.4 percent in October. Over the November 2002-2003 period, petroleum prices increased 11.9 percent. Prices for nonpetroleum imports rose 0.3 percent in November and were up 1.1 percent over the past 12 months. Overall import prices were up 2.1 percent over the same 12-month period.

The November increase in the price index for nonpetroleum imports was led by a 0.7 percent increase in prices for nonpetroleum industrial supplies and materials. Higher prices for metals and chemicals contributed to the rise in nonpetroleum industrial supplies and materials prices, which were up 6.4 percent over the past 12 months. The price indexes for capital goods and for consumer goods also were up in November, rising 0.2 percent and 0.3 percent, respectively. For the year ended in November, however, capital goods prices were down 0.9 percent, while consumer goods prices were up 0.2 percent over the same period.

Prices for foods, feeds and beverages rose 0.2 percent in November and were up 2.3 percent over the past year. The price index for automotive vehicles, parts, and engines posted no change in November, after rising 0.7 percent in October, and was up 0.8 percent over the November 2002-2003 period.

Export Goods

Export prices increased 0.5 percent in November, following a 0.3 percent rise in October and a 0.4 percent rise in September. The advance was again led by higher agricultural prices, which were up 4.3 percent in November and 12.7 percent over the past three months. Higher prices for soybeans, feedstuff, and cotton all contributed to the November increase in agricultural export prices, which rose 12.8 percent for the year ended in November. The price index for nonagricultural exports rose 0.2 percent in November after edging up 0.1 percent in October. Over the past year, the index was up 0.9 percent. Prices for overall exports were up 1.8 percent over the November 2002-2003 period.

The price indexes for nonagricultural industrial supplies and materials, for capital goods, and for consumer goods each increased in November. Prices for nonagricultural industrial supplies and materials were up 0.4 percent, led by higher prices for metals and chemicals. The index was up 5.1 percent for the year ended in November. The price indexes for capital goods and for consumer goods rose 0.1 percent and 0.2 percent, respectively, last month. Over the past 12 months, capital goods prices fell 0.8 percent, while consumer goods prices increased 0.7 percent.

The price index for automotive vehicles, parts, and engines was the only major export commodity price index to decrease, down 0.1 percent in November, after rising 0.2 percent in October. For the year ended in November, the index was up 0.4 percent.

Imports by Locality of Origin

The price indexes for imports from Canada, from the European Union, and from Japan each rose in November, paralleling the recent depreciation of the U.S. dollar against the Canadian dollar, European currencies, and the Japanese yen. Import prices from Canada were up 0.3 percent in November and up 4.9 percent over the past 12 months. Prices of imports from the European Union increased 0.5 percent for the month and were up 3.3 percent for the year ended in November. Import prices from Japan rose 0.2 percent in November, but fell 0.4 percent over the past 12 months.

Import prices from Latin America edged up 0.1 percent last month and rose 3.5 percent over the past 12 months.

In contrast, import prices from the Asian Newly Industrialized Countries were down 0.2 percent in November, the fourth consecutive decline for this index. For the year ended in November, the index was down 1.0 percent.

Import and Export Services

The price index for import air passenger fares decreased 7.4 percent in November, after dropping 9.1 percent in October. Those declines were led by seasonal drops in fares to Europe. However, for the year ended in November, the index was up a modest 0.4 percent. Prices for export air passenger fares decreased 1.4 percent last month, after rising 1.8 percent in October. Export air passenger fares were up 14.8 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.