December 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.

- DECEMBER 2003 -

The U.S. Import Price Index increased 0.2 percent in December, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was led by a continued rise in petroleum prices. Export prices advanced for the fourth consecutive month, up 0.2 percent in December.

Import Goods

The price index for overall imports rose for the third consecutive month, rising 0.2 percent in December. From December 2002-December 2003, the index was up 1.9 percent, which followed a 4.2 percent increase over the previous year. The December increase was led by higher petroleum prices, which were up 1.8 percent in December, after rising 2.1 percent in November and 1.5 percent in October. From December 2002-2003, import petroleum prices rose 9.1 percent, after surging 56.9 percent during the previous year. Prices for nonpetroleum imports edged up 0.1 percent in December, following a 0.2 percent increase in November. Nonpetroleum import prices rose 1.0 percent over the past year.

The 0.1 percent rise in the price index for nonpetroleum imports reflected higher prices for nonpetroleum industrial supplies and materials and for foods, feeds, and beverages, up 0.8 percent and 0.7 percent, respectively. Continued increases in metals prices contributed to the rise in the index for nonpetroleum industrial supplies and materials, which was up 6.7 percent over the past 12 months. Higher meat prices led the rise in the foods, feeds, and beverages index, which was up 3.0 percent for the year.

In contrast, the price index for imported capital goods dipped 0.2 percent in December, after increasing by the same amount in November. The decline in December was led by falling semiconductor prices, which continued a downward trend. For the year, capital goods prices were down 1.0 percent.

Prices for automotive vehicles, parts, and engines and for consumer goods were unchanged in December. Over the past year, the indexes have increased 0.7 percent and 0.1 percent, respectively.

Export Goods

Export prices increased 0.2 percent in December, following a 0.5 percent rise in November. Export prices rose 2.2 percent over the past 12 months, following a 1.0 percent increase during the previous year. Prices for both agricultural and nonagricultural exports contributed to the December increase. Prices for feedstuff, wheat, and soybeans led the 0.7 percent increase in agricultural exports prices, which were up 13.6 percent over the past 12 months. The price index for nonagricultural exports rose 0.2 percent in December, after increasing the same amount in November. For the year, nonagricultural prices were up 1.3 percent.

The price indexes for nonagricultural industrial supplies and materials, for capital goods, and for consumer goods each increased in December. Prices for nonagricultural industrial supplies and materials were up 0.6 percent, led by higher prices for fuel oil and metals. This index increased 5.9 percent over the December 2002-December 2003 period. The price indexes for capital goods and for consumer goods each rose 0.1 percent in December. Over the past 12 months, capital goods prices fell 0.5 percent, while consumer goods prices increased 0.8 percent.

The price index for automotive vehicles, parts, and engines was the only major export commodity price index to decrease, falling 0.1 percent in December. For the year, the index was up 0.5 percent.

Summary of December-to-December Percent Changes

Imports by Locality of Origin

The price indexes for imports from the European Union and from Latin America each rose in December, reflecting higher prices for petroleum products. Prices of imports from the European Union increased 0.4 percent for the month and were up 3.3 percent over the December 2002-2003 period. Import prices from Latin America rose 1.6 percent in December and were up 3.5 percent over the past 12 months.

In contrast, prices for imports from Canada declined in December, falling 0.2 percent. Over the past year, however, the index was up 4.4 percent.

The price indexes for imports from Japan and from the Asian Newly Industrialized Countries both were unchanged in December. For the year ended in December, each index decreased 0.4 percent.

Import and Export Services

The price index for import air passenger fares edged up 0.9 percent in December, after dropping 7.4 percent in November and 9.1 percent in October. Over the past 12 months, the index was down a modest 0.2 percent. Prices for export air passenger fares were unchanged in December, after declining 1.4 percent in November. Export air passenger fares were up 14.7 percent for the year ended in December.

The price index for import air freight declined 1.6 percent over the last quarter of 2003, following an increase of 4.8 percent in the third quarter. From December 2002-December 2003, the index rose 7.5 percent. Export air freight prices increased 0.3 percent from September to December and were up 0.2 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. Previous practice was to update 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.