October 2004 U.S. Import and Export Price Indexes

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

- OCTOBER 2004 -

The U.S. Import Price Index rose 1.5 percent in October, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. An 11.7 percent increase in import petroleum prices last month more than offset a 0.2 percent decline in the price index for nonpetroleum imports. Export prices were up 0.7 percent in October, following a 0.4 percent rise in September.

Import Goods

Import prices were up 1.5 percent in October, the fourth consecutive monthly advance and largest increase for the index since May. The rise was attributable to an 11.7 percent jump in petroleum prices. The price index for petroleum has trended upward since June 2003, when the index rose 24.8 percent. For the year ended in October, petroleum prices were up 67.6 percent. In contrast, nonpetroleum import prices fell 0.2 percent last month, the first decline for the index since October 2003. Prices for nonpetroleum imports rose 2.7 percent over the October 2003-2004 period. Led by the sharp increase in petroleum prices, overall import prices were up 9.7 percent over the same timeframe.

The October decrease in nonpetroleum prices was led by a 1.1 percent decline in the price index for nonpetroleum industrial supplies and materials, a drop attributable to falling prices for lumber and other finished building materials. Despite the decline, nonpetroleum industrial supplies and materials prices increased 12.8 percent over the past 12 months. Import capital goods prices fell 0.2 percent in October, led by falling computer prices. The price index for capital goods has not increased since January and was down 1.3 percent over the past year. A 0.6 percent drop in prices for foods, feeds, and beverages also contributed to the October decline in nonpetroleum prices and resulted from lower vegetable prices. Foods, feeds, and beverages prices were up 6.0 percent for the year ended in October.

Import automotive vehicle prices rose 0.4 percent in October, partially offsetting the declines in other nonpetroleum prices. The increase was the largest since October 2003 and was attributable to year-end model changeovers. Prices for automotive vehicles were up 1.8 percent over the past 12 months. The price index for consumer goods was unchanged last month and was up a modest 0.5 percent for the year ended in October.

Export Goods

Export prices rose 0.7 percent in October, led by a 1.0 percent increase in nonagricultural export prices, which more than offset a 1.3 percent drop in agricultural prices. The advance in nonagricultural prices was the largest monthly increase since October 1990. Prices for nonagricultural exports increased in 11 of the past 12 months and were up 5.2 percent over that period. Overall export prices also were up for the year ended in October, increasing 4.5 percent.

Nonagricultural industrial supplies and materials prices, up 2.5 percent in October, led the increase in nonagricultural export prices. Rising prices for chemicals, fuel, and metals all contributed to the increase. Prices for nonagricultural industrial supplies and materials were up 16.6 percent over the past year. Higher prices for capital goods and for automotive vehicles were also factors in the increase in nonagricultural prices. The price index for capital goods rose 0.4 percent, the largest monthly gain since April 1995. Capital goods prices had been relatively stable over the past six months prior to October and rose 1.0 percent for the year ended in October. Prices for automotive vehicles increased 0.2 percent in October, attributable to both higher parts prices and year-end model changeovers. The index was up 0.9 percent over the past 12 months. Consumer goods prices fell 0.1 percent in October but were up 1.1 percent over the past year.

The 1.3 percent decrease in agricultural exports in October resumed the recent downward trend for the index, following a 1.7 percent increase in September. In October, declining prices for soybeans and corn more than offset higher vegetable and fruit prices. Agricultural prices fell 1.3 percent over the past 12 months.

Imports by Locality of Origin

Led by higher petroleum prices, the price indexes for imports from Latin America, from the European Union, and from Canada all rose in October. Prices of imports from Latin America were up 2.6 percent, the largest increase since February 2003. The index was up 16.3 percent for the year ended in October. Import prices from the European Union and from Canada each were up 0.6 percent in October. Over the past year, the indexes were up 7.1 percent and 11.2 percent, respectively.

Prices for imports from Japan increased 0.2 percent last month after a modest 0.1 percent decline in September. Import prices from Japan were up 1.7 percent over the past 12 months.

Import prices from the Asian Newly Industrialized Countries were unchanged last month and for the year ended in October.

Import and Export Services

Both import and export air passenger fares were down in October due to seasonal price declines. Import air passenger fares fell 4.6 percent in October, following a similar 4.1 percent decrease the previous month. The index was up 0.8 percent for the year ended in October. Export air passenger fares also declined last month, falling a more modest 1.9 percent after decreasing 6.8 percent in September. Notwithstanding the recent declines, export air passenger fares were up 6.2 percent over the past year.