March 2004 U.S. Import and Export Price Indexes

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- MARCH 2004 -

The U.S. Import Price Index rose 0.9 percent in March, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Higher prices for both petroleum and nonpetroleum imports contributed to the overall increase. Export prices also rose 0.9 percent in March, the largest monthly increase in this index in nine years.

Import Goods

Import prices continued an upward trend in March, rising 0.9 percent for the month and 2.9 percent over the first quarter of 2004. Higher prices for import petroleum accounted for most of the increase, rising 6.1 percent in March. Petroleum prices have advanced in 9 of the past 10 months, after falling sharply last spring. Over the past 12 months, the index was up 1.9 percent. Nonpetroleum import prices were up a modest 0.2 percent in March, after rising 0.4 percent and 0.8 percent in the first two months of 2004. For the year ended in March, nonpetroleum import prices were up 1.0 percent, while prices of overall imports rose 1.2 percent.

The March increase in nonpetroleum import prices was led by a continued advance in the price index for nonpetroleum industrial supplies and materials, up 1.1 percent. Higher prices for building materials and unfinished metals were the primary contributors to the increase. Nonpetroleum industrial supplies and materials prices were up 3.8 percent for the year ended in March.

The price index for foods, feeds, and beverages also rose in March, up 0.8 percent. The increase continued a recent upward trend and was led by higher seafood prices. Foods, feeds, and beverages prices were up 3.1 percent over the past 12 months. Prices for automotive vehicles increased 0.1 percent last month and 1.3 percent over the March 2003-2004 period.

Import prices for capital goods and consumer goods continued to register little movement, as both were unchanged in March. Over the past year, capital goods prices fell 0.6 percent, while prices for consumer goods rose 0.8 percent.

Export Goods

Export prices were up 0.9 percent in March and 2.3 percent over the first quarter of 2004, the largest 3-month jump in export prices since the second quarter of 1988. Prices for both agricultural and nonagricultural exports contributed to the recent increase in overall export prices. The price index for agricultural exports rose 3.3 percent in March, led by a sharp increase in soybean prices. Agricultural prices have been trending upward since the middle of 2003 and were up 20.7 percent over the past 12 months. Nonagricultural export prices rose 0.6 percent last month, following increases of 0.6 percent and 0.7 percent in February and January. Prices for nonagricultural exports were up 1.9 percent for the year ended in March, while overall export prices rose 3.4 percent over the same period.

A 1.7 percent increase in the price index for nonagricultural industrial supplies and materials was the primary contributor to the March increase in export prices. Nonagricultural industrial supplies and materials prices were up 6.0 percent over the past three months and 7.5 percent for the year ended in March. Prices for capital goods, which account for approximately 42 percent of exports, rose 0.3 percent for the second consecutive month. The increase was mainly attributable to higher prices for computer peripherals and semiconductors. Notwithstanding the recent increases, capital goods prices were down 0.2 percent over the past 12 months.

The price indexes for both automotive vehicles and consumer goods were unchanged in March, and each was up 0.5 percent over the past 12 months.

Imports by Locality of Origin

The price indexes for imports from Latin America and from the European Union both increased in March, led by higher petroleum prices. Prices for imports from Latin America were up 1.6 percent last month and 2.1 percent for the year ended in March, while prices for imports from Europe rose 0.6 percent in March and 4.1 percent over the past 12 months.

Import prices from Canada also increased in March, rising 1.3 percent. A 1.6 percent rise in prices for manufactured goods more than offset a 0.7 percent decline in nonmanufactured goods prices. For the March 2003-2004 period, overall import prices from Canada were up 3.7 percent.

Prices for imports from Japan and the Asian Newly Industrialized Countries were unchanged last month. Import prices from Japan were up 0.7 percent for the year ended in March, whereas prices of imports from the Asian Newly Industrialized Countries fell 1.8 percent over the past year.

Import and Export Services

The price indexes for both import and export air passenger fares posted declines in March, decreasing 0.3 percent and 0.1 percent, respectively. The modest decreases followed February drops of 2.7 percent for import air passenger fares and 3.5 percent for export air passenger fares. For the year ended in March, import fares declined 4.6 percent, whereas export fares were up 13.7 percent over the same period.

Import air freight prices rose 1.9 percent during the first quarter of 2004, after declining 1.6 percent for the previous three months. For the year ended in March, import air freight prices were up 6.3 percent. Export air freight prices rose by a similar amount in March, rising 1.8 percent. Over the past 12 months, the index was up 0.8 percent.