April 2004 U.S. Import and Export Price Indexes

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- APRIL 2004 -

The U.S. Import Price Index increased 0.2 percent in April, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Higher prices for nonpetroleum imports more than offset a modest decline in petroleum prices. Export prices rose 0.6 percent in April, after increasing 2.3 percent over the previous three months.

Import Goods

Prices of overall imports rose 0.2 percent in April, the smallest increase for this index in six months. The increase was led by a 0.3 percent rise in nonpetroleum import prices, the sixth consecutive monthly increase for the index. Over the past 12 months, prices for nonpetroleum imports rose 2.4 percent. In contrast, petroleum prices declined 0.8 percent in April, after rising in each of the prior six months. Import prices for petroleum were up 23.7 percent for the year ended in April, while overall import prices were up 4.6 percent over the same period.

Higher prices for nonpetroleum industrial supplies and materials continued to lead the price increase for nonpetroleum imports. Prices for nonpetroleum industrial supplies and materials increased 2.0 percent in April, primarily attributable to a sharp rise in iron and steel prices, and were up 11.4 percent over the past year. The price indexes for foods, feeds, and beverages and for automotive vehicles also rose in April, up 1.2 percent and 0.1 percent, respectively. Over the past 12 months, foods, feeds, and beverages prices were up 4.6 percent, while prices for automotive vehicles rose 1.4 percent.

In contrast, capital goods prices fell in April, declining 0.5 percent. The decrease was the first for this index since December and was led by lower prices for computers, peripherals, and semiconductors. Prices for import capital goods decreased 1.2 percent for the April 2003-2004 period.

Consumer goods prices were unchanged last month and increased 0.7 percent for the year ended in April.

Export Goods

Export prices increased for the eighth consecutive month, as both agricultural and nonagricultural export prices rose in April. Agricultural prices rose 2.6 percent in April, continuing an upward trend since September 2003. Higher prices for soybeans and corn, which have risen over the past eight months, as well as April price increases for wheat and fruit, contributed to the increase in agricultural prices. For the year ended in April, prices for agricultural exports were up 23.3 percent. Nonagricultural export prices also continued a recent upward trend, rising 0.4 percent in April following price increases of 0.6 percent in each of the two previous months and a 0.7 percent rise in January. Over the past year, nonagricultural prices were up 2.4 percent, while overall export prices rose 4.1 percent.

The rise in nonagricultural exports was led by a continued advance in the price index for nonagricultural industrial supplies and materials, up 1.3 percent in April and 9.4 percent over the past 12 months. Higher prices for precious metals, iron and steel products, chemicals, fuels, and paper all contributed to the April increase.

Prices for each of the major finished goods categories also rose modestly in April, contributing to the increase in nonagricultural prices. The price index for capital goods, which account for approximately 42 percent of exports, was up 0.1 percent in April, following 0.2 percent and 0.3 percent increases in the prior two months. However, capital goods prices were down 0.2 percent for the year ended in April. Prices for automotive vehicles and for consumer goods edged up in April, increasing 0.2 percent and 0.1 percent, respectively. For the April 2003-2004 period, automotive vehicle prices were up 0.6 percent and prices for consumer goods rose 0.9 percent.

Imports by Locality of Origin

Import prices from the European Union, from Latin America, and from Canada all rose in April, as higher prices for manufactured goods more than offset price declines for nonmanufactured goods. Prices of imports from the European Union increased 0.7 percent in April and 5.2 percent over the past 12 months, while import prices from Latin America were up 0.6 percent and 7.5 percent over the same periods. Prices of goods from Canada also were up, rising 0.2 percent in April and 7.9 percent over the past year.

Prices of imports from the Asian Newly Industrialized Countries increased 0.6 percent last month, the first monthly advance for this index since September. The index was down 0.9 percent for the year ended in April.

Import prices from Japan were unchanged for the second consecutive month. The index rose 1.1 percent over the April 2003-2004 period.

Import and Export Services

Import air passenger fares rose 7.3 percent in April, following declines in each of the three previous months. The increase was mainly attributable to a 10.7 percent increase in European fares. Export air passenger fares were up 0.6 percent in April, following declines of 0.1 percent and 3.5 percent in March and February. For the year ended in April, import air passenger fares fell 5.7 percent, whereas export air passenger fares were up 13.8 percent.