July 2004 U.S. Import and Export Price Indexes

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- JULY 2004 -

The U.S. Import Price Index rose 0.2 percent in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase resumed the upward trend in the index, following a modest 0.1 percent decrease in June. Export prices rose 0.4 percent in July, after a 0.7 percent decline in June.

Import Goods

Import prices increased 0.2 percent in July, following a petroleum- driven 0.1 percent decline in June. Prior to the June downturn, import prices had been up in each of the previous eight months. Import petroleum prices advanced 0.9 percent in July, contributing to the overall increase in import prices and reversing the 0.9 percent downturn for the index in June. Prices for petroleum imports were up 29.5 percent over the past 12 months. Nonpetroleum prices also rose in July, edging up 0.1 percent. Prices for nonpetroleum imports have not declined since October and were up 2.6 percent for the year ended in July. Overall, import prices rose 5.5 percent over the same period.

The price index for nonpetroleum industrial supplies and materials was up 0.2 percent in July as higher prices for chemicals and metals more than offset lower building materials prices. Nonpetroleum industrial supplies and materials prices were up 13.0 percent over the year. Prices for foods, feeds, and beverages and for automotive vehicles also increased in July, rising 0.6 percent and 0.1 percent, respectively. For the year ended in July, foods, feeds, and beverages prices were up 5.9 percent, while prices for import automotive vehicles rose 1.7 percent. Prices for consumer goods were unchanged for the second consecutive month in July. Consumer goods prices increased 0.4 percent over the year.

In contrast, capital goods prices were down in July, falling 0.1 percent. The price index for capital goods has not posted a monthly increase since January, largely due to lower prices for computers, peripherals, and semiconductors. Prices for imported capital goods were down 1.7 percent over the July 2003-2004 period.

Export Goods

Export prices rose 0.4 percent in July, as higher prices for nonagricultural exports more than offset a decline in the price index for agricultural exports. Nonagricultural export prices were up 0.6 percent in July, resuming the upward trend for the index after decreasing 0.2 percent in June. For the year ended in July, prices for nonagricultural exports were up 3.5 percent. Overall, export prices rose 4.4 percent over the same period.

The index for nonagricultural industrial supplies and materials prices, up 1.6 percent in July, led the increase in nonagricultural export prices. Rising prices for iron and steel led the increase, while higher prices for fuels, chemicals, and paper also were contributing factors. The price index for nonagricultural industrial supplies and materials was up 12.1 percent over the past year. Prices for consumer goods rose 0.5 percent in July, led by higher prices for medical, dental, and pharmaceutical materials. Consumer goods prices were up 1.3 percent over the past 12 months. Prices for capital goods and for automotive vehicles increased 0.1 percent and 0.2 percent, respectively, in July. Over the past year, capital goods prices rose 0.5 percent, and prices for automotive vehicles were up 0.7 percent.

In contrast, agricultural export prices were down for the second consecutive month, declining 1.0 percent in July. The decrease followed a 4.6 percent drop in June, as lower prices for corn, meat, and wheat more than compensated for an increase in soybean prices in July. Despite the recent declines, prices for agricultural exports were up 14.8 percent over the past year.

Imports by Locality of Origin

Import prices from Japan rose 0.4 percent in July after falling 0.2 percent in the previous month. The July increase was the largest monthly gain since December. The price index for imports from Japan was up 1.4 percent over the past 12 months.

Prices for imports from the Asian Newly Industrialized Countries increased 0.1 percent in July, following a 0.3 percent drop in June. The index was down 0.9 percent for the year ended in July.

The price indexes for imports from Latin America and from the European Union both were up in July, rising 0.8 percent and 0.3 percent, respectively. Import prices from Latin America were up 9.1 percent for the year ended in July, while prices for imports from the European Union were up 5.3 percent over the same period.

In contrast, import prices from Canada fell 0.2 percent in July, the first decline for the index since October 2003. The index was up 7.9 percent over the past year.

Import and Export Services

Import air passenger fares rose 2.8 percent in July, the fourth consecutive monthly increase. Despite the upward trend of the past four months, the index was down 2.2 percent for the year ended in July. Export air passenger fares also increased in July, rising 4.7 percent for the month. The advance followed a modest 0.2 percent rise in June and was attributable to seasonal rate hikes. Over the past 12 months, export air passenger fares were up 4.9 percent.