May 2004 U.S. Import and Export Price Indexes

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- MAY 2004 -

The U.S. Import Price Index increased 1.6 percent in May, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was led by petroleum, up 10.3 percent in May, the largest one-month advance in petroleum prices since February 2003. Export prices were up 0.3 percent in May, as both agricultural and nonagricultural export prices continued to increase.

Import Goods

Import prices rose 1.6 percent in May, the eighth consecutive monthly advance and the largest one-month rise since February 2003. The increase was led by a 10.3 percent jump in petroleum prices, which had risen for 6 consecutive months prior to a 0.4 percent decline in April. Over the past 12 months, the price index for petroleum imports was up 43.9 percent, while overall import prices rose 7.0 percent. Prices for nonpetroleum imports continued a modest upward trend in May, up 0.4 percent, compared with increases of 0.2 percent to 0.4 percent in five of the preceding six months. For the year ended in May, nonpetroleum imports were up 3.0 percent.

The increase in nonpetroleum import prices again was attributable mainly to higher prices for nonpetroleum industrial supplies and materials, up 2.1 percent in May and 14.7 percent over the past year. Increasing prices for iron and steel, natural gas, and lumber all contributed to the May rise. The price index for import capital goods also rose in May, up 0.1 percent. The upturn followed a 0.5 percent decline in April and was the first increase for the index since January. For the year ended in May, capital goods prices were down 0.1 percent.

In contrast, the price indexes for foods, feeds, and beverages and for consumer goods fell in May, down 0.3 percent and 0.1 percent, respectively. The price decline for foods, feeds, and beverages was the first since August 2003; over the past 12 months, the index increased 5.5 percent. Consumer goods prices also were up for the year ended in May, increasing 0.6 percent.

Prices for automotive vehicles were unchanged in May and up 1.3 percent over the May 2003-2004 period.

Export Goods

Export prices rose 0.3 percent in May, compared with increases of 0.7 percent or more in each of the preceding four months. Prices for agricultural exports continued to trend upward, up 0.5 percent in May, a smaller increase than posted for the previous four months. Over the past year, agricultural prices were up 20.9 percent. Nonagricultural prices increased a more modest 0.2 percent in May, after rising 2.3 percent over the first four months of 2004. For the year ended in May, prices for nonagricultural exports were up 2.8 percent, while overall export prices rose 4.3 percent.

A 0.9 percent advance in the price index for nonagricultural industrial supplies and materials led the May increase in nonagricultural export prices. However, the May increase in nonagricultural supplies and materials prices was smaller than the increases posted in each of the first four months of the year, which ranged from 1.2 percent to 2.6 percent. Rising prices for petroleum products, iron and steel, and chemicals contributed to the May increase. Nonagricultural industrial supplies and materials prices were up 11.0 percent over the past 12 months.

Prices for each of the major finished goods categories were unchanged in May. Capital goods prices were down 0.2 percent over the past year, the only major export component to decline over the past 12 months. In contrast, both the price indexes for consumer goods and for automotive vehicles were up for the year ended in May, increasing 0.9 percent and 0.6 percent, respectively.

Imports by Locality of Origin

The price indexes for imports from Japan and from the Asian Newly Industrialized Countries both rose 0.2 percent in May. Import prices from Japan resumed an upward trend after a modest 0.1 percent decline in April. For the year ended in May, the index for imports from Japan rose 1.4 percent. Prices for imports from the Asian Newly Industrialized Countries decreased 0.3 percent over the same 12-month period.

Import prices from Latin America and Canada also rose in May, up 1.9 percent and 1.6 percent, respectively. Higher petroleum prices were a contributing factor to the increases in both indexes. Over the past year, import prices from Latin America were up 11.7 percent, while prices of imports from Canada rose 10.5 percent.

Prices of imports from the European Union were unchanged in May, as a 6.8 percent increase in nonmanufactured goods prices was offset by a 0.2 percent decline in the price index for manufactured goods. Overall import prices from the European Union were up 6.4 percent for the year ended in May.

Import and Export Services

Import air passenger fares were up 0.9 percent in May, following a 7.3 percent rise in April. Despite the recent increases, the index was down 4.7 percent for the year ended in May. In contrast, export air passenger fares fell 0.6 percent in May. Declines in European and Latin American fares more than offset higher Asian fares. Over the past 12 months, export air passenger fares increased 8.0 percent.