January 2004 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.

- JANUARY 2004 -

The U.S. Import Price Index increased 1.3 percent in January, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. A rise in prices for both petroleum and nonpetroleum imports contributed to the overall increase, the largest one month rise since February 2003. Export prices advanced for the fifth consecutive month, rising 0.5 percent in January.

Import Goods

The 1.3 percent advance in import prices marked the fourth consecutive monthly increase in this series and was led by a 6.2 percent climb in petroleum prices, the largest rise in the petroleum index since February 2003. Over the past twelve months, however, petroleum prices were up a comparatively modest 2.8 percent. Prices for nonpetroleum imports rose 0.7 percent in January and were up 1.5 percent during the January 2003-2004 period. Overall import prices rose 1.8 percent for the year ended in January.

The January increase for nonpetroleum prices, which was the largest increase since March 2003, was the result of price increases for every major import product category. An increase of 3.1 percent in nonpetroleum industrial supplies and materials prices was led by continued increases in prices for natural gas and unfinished metals. Over the past year, the price index for nonpetroleum industrial supplies and materials was up 8.2 percent.

Prices for automotive vehicles, parts, and engines, and for consumer goods increased in January, rising 0.2 percent and 0.3 percent, respectively. From January 2003-January 2004, prices for automotive vehicles, parts, and engines were up 1.1 percent, and consumer goods prices rose 0.4 percent.

Imported capital goods prices edged up 0.1 percent in January, following a 0.3 percent decline in December. For the year, capital goods prices were down 0.9 percent. The price index for imported foods, feeds, and beverages also rose in January, up 0.4 percent, the fifth consecutive increase for this index. Over the past year, the index advanced 2.2 percent.

Export Goods

Export prices gained 0.5 percent in January, following a 0.2 percent rise in December. Prices for agricultural exports declined 0.5 percent, but were more than offset by a 0.6 percent increase in nonagricultural export prices, the largest increase in this component since February 2003. A drop in meat prices led the decrease in agricultural export prices, which still were up 12.8 percent over the past 12 months. The price index for nonagricultural prices was up 1.4 percent for the year ended in January, while overall export prices were up 2.3 percent over the same period.

The increase in nonagricultural export prices was primarily attributable to the 2.6 percent rise in nonagricultural industrial supplies and materials, which in turn was led by higher prices for chemicals and metals. Over the January 2003-2004 period, nonagricultural industrial supplies and materials prices increased 7.6 percent. Consumer goods prices edged up 0.1 percent in January and were up 1.0 percent over the past 12 months.

In contrast, prices for capital goods fell in January, declining 0.3 percent. Falling prices for computers, peripherals, and semiconductors were responsible for the decline. For the year ended in January, the export capital goods price index was down 1.1 percent.

The price index for automotive vehicles, parts, and engines was unchanged in January. Over the past 12 months, the index increased 0.3 percent.

Imports by Locality of Origin

The price indexes for imports from Canada, from the European Union, and from Latin America each rose in January. Prices of imports from Canada increased 1.6 percent while prices of imports from the European Union increased 1.5 percent for the month. Over the past 12 months, prices for imports from Canada and from the European Union rose 4.7 percent and 4.3 percent, respectively. Import prices from Latin America rose 1.3 percent in January and were up 0.9 percent over the past year.

The price index for imports from Japan rose 0.4 percent last month and was up 0.3 percent for the year ended in January.

In contrast, prices for imports from the Asian Newly Industrialized Countries declined in January, falling 0.9 percent. Over the past year, the index was down 1.3 percent.

Import and Export Services

The price index for import air passenger fares dipped 0.2 percent in January, after increasing 0.9 percent in December. Over the past 12 months, the index was down 0.9 percent. Prices for export air passenger fares increased 7.9 percent in January and were up 15.7 percent for the past year.

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

Beginning with the January 2004 data in this release, the U.S. Import and Export Price Indexes are derived 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 remains fixed at calendar year 2000=100. In addition, the U.S. carrier and foreign carrier air passenger fares indexes found in table 11 are being replaced with indexes that measure prices for inbound and outbound flights.