February 2004 U.S. Import and Export Price Indexes

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- FEBRUARY 2004 -

The U.S. Import Price Index rose 0.4 percent in February, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was attributable primarily to higher nonpetroleum import prices. Export prices also were up in February, increasing 0.6 percent for the second consecutive month.

Import Goods

Overall import prices rose for the fifth consecutive month, increasing 0.4 percent in February following a 1.5 percent advance in January. Petroleum prices posted little movement last month, increasing 0.2 percent after rising 17.1 percent over the previous four months. Nonpetroleum import prices were up 0.4 percent in February after increasing 0.8 percent the previous month. Overall import prices increased 0.8 percent for the year ended in February, as prices of nonpetroleum imports rose 1.8 percent while petroleum prices declined 4.9 percent over the same period.

Prices for nonpetroleum industrial supplies and materials had the largest impact on the price index for nonpetroleum imports for the second consecutive month, increasing 1.4 percent in February following a 3.2 percent rise in January. Higher prices for both building materials and unfinished metals led the advance. Prices for nonpetroleum industrial supplies and materials were up 7.8 percent for the year ended in February.

Rising prices for foods, feeds, and beverages and for automotive vehicles also contributed to the February increase in nonpetroleum import prices. The price index for foods, feeds, and beverages rose 1.6 percent, largely attributed to higher prices for vegetables and seafood. Foods, feeds, and beverages prices were up 3.9 percent over the past year. Automotive vehicle prices increased 0.1 percent in February and 1.2 percent over the past 12 months.

Prices for capital goods and for consumer goods were unchanged in February. For the year ended in February, capital goods prices fell 0.9 percent while consumer goods prices were up 0.6 percent.

Export Goods

Export prices were up 0.6 percent in both January and February, the largest increase over two months since 1995. Higher prices for both agricultural exports and nonagricultural exports contributed to the overall increase in February. The price index for agricultural exports rose 1.2 percent in February, resuming the recent upward trend in this index after a modest 0.2 percent decline in January. Higher prices for corn, soybeans, and vegetables all contributed to the increase. Prices for nonagricultural exports were up 0.6 percent for the second consecutive month. Over the February 2003-2004 period, agricultural prices were up 14.9 percent and prices for nonagricultural exports were up 1.4 percent. Overall export prices rose 2.4 percent during the past year.

For the second consecutive month, higher prices for nonagricultural industrial supplies and materials led the advance in the price index for nonagricultural exports. The price index for nonagricultural industrial supplies and materials rose 1.6 percent in February after increasing 2.6 percent the previous month. Rising prices for exported metals, chemicals, and lumber all contributed to the increase. Over the past 12 months, nonagricultural industrial supplies and materials prices were up 7.1 percent.

Prices for capital goods and automotive vehicles were up in February, increasing 0.2 percent and 0.1 percent, respectively. Despite the February increase, the price index for capital goods was down 1.0 percent over the past 12 months. Automotive vehicle prices were up 0.5 percent for the year ended in February.

In contrast, consumer goods prices fell 0.1 percent in February. Over the past 12 months, the index was up 0.4 percent.

Imports by Locality of Origin

Prices for imports from Canada rose 2.4 percent in February. The advance was led primarily by a 2.7 percent jump in manufactured goods prices, the largest increase for this index since monthly publication began in October 1992. Overall import prices from Canada were up 5.5 percent during the past 12 months.

Import prices from the European Union and Latin America rose in February, increasing 0.9 percent and 0.3 percent, respectively. Prices for imports from the European Union rose 3.5 percent for the year ended in February, while prices for imports from Latin America fell 1.0 percent over the same period.

The price index for imports from Japan also was up, rising a modest 0.1 percent in February and 0.6 percent over the past 12 months. In contrast, import prices from the Asian Newly Industrialized Countries declined 0.3 percent last month and fell 1.9 percent for the year ended in February.

Import and Export Services

The indexes for both import and export air passenger fares fell in February, declining 2.7 percent and 3.5 percent, respectively. Import air passenger fares were down for the second consecutive month and decreased 3.2 percent for the year ended in February. In contrast, the decline in export air passenger fares followed a 7.9 percent increase in January. Over the past 12 months, the price index for export air passenger fares was up 15.1 percent.