January 2005 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.

- JANUARY 2005 -

The U.S. Import Price Index increased 0.9 percent in January, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase followed a 1.4 percent decline in December and was attributable to higher prices for both petroleum and nonpetroleum imports. Export prices increased 0.7 percent in January after advancing 0.2 percent in December.

Import Goods

Import prices rose 0.9 percent in January after declining in December and November. Petroleum prices, the main contributor to the declines in the previous two months, led the overall increase in import prices in January. The price index for import petroleum rose 4.6 percent in January after falling 16.8 percent over the prior two months. For the year ended in January, petroleum prices were up 26.9 percent. Nonpetroleum import prices increased for the third consecutive month, rising 0.2 percent in January after increasing 0.4 percent in December and 0.9 percent in November. Over the past 12 months, prices for nonpetroleum imports increased 3.0 percent, while overall import prices advanced 6.0 percent.

Rising prices for consumer goods, for capital goods, and for nonpetroleum industrial supplies and materials all contributed to the modest January increase in nonpetroleum prices. The price index for import consumer goods rose 0.4 percent, the largest increase for the index since January 2004. The increase in consumer goods prices, which were up 0.8 percent over the past year, was led by higher prices for medicinal and pharmaceutical products. Capital goods prices rose for the third consecutive month, advancing 0.2 percent in January. Despite the recent upturn, the price index for capital goods declined 0.8 percent over the past 12 months. Prices for nonpetroleum industrial supplies and materials edged up 0.1 percent last month and increased 13.1 percent for the year ended in January.

In contrast, the price indexes for automotive vehicles, parts, and engines and for foods, feeds, and beverages recorded modest decreases in January. Prices for automotive vehicles fell for the first time since September 2003, declining 0.1 percent in January. The foods, feeds, and beverages index dipped 0.2 percent in January following increases in each of the previous four months. Prices for foods, feeds and beverages increased 6.9 percent over the past 12 months.

Export Goods

Export prices rose 0.7 percent in January, with both agricultural and nonagricultural prices contributing to the increase. The price index for agricultural exports advanced 0.3 percent in January, led by higher prices for both soybeans and corn. Despite the increase, agricultural prices decreased 6.2 percent over the past 12 months. Prices for nonagricultural exports increased 0.7 percent last month and were up 5.1 percent for the year ended in January. Overall export prices rose 4.0 percent over the same period and have increased for five consecutive months.

Prices for nonagricultural industrial supplies and materials continued to trend upward in January, increasing 1.5 percent. Higher fuel and chemical prices led the January rise in the price index for this area, which rose 15.5 percent for the January 2004-2005 period.

Increasing prices for each of the major finished goods areas also contributed to the January increase in nonagricultural export prices. Prices for both capital goods and for automotive vehicles rose 0.3 percent in January, the fourth consecutive increase for each index. Over the past 12 months, capital goods prices increased 1.0 percent and prices for automotive vehicles advanced 1.3 percent. The price index for export consumer goods increased 0.6 percent last month, the largest monthly increase for the index since 1992. Higher prices for durable goods and for medicinal and pharmaceutical products led the increase. Export consumer goods prices advanced 1.6 percent for the year ended in January.

Imports by Locality of Origin

Prices for imports from the European Union increased 1.3 percent in January, which was the largest monthly gain for the index since January 2004. European import prices were up 6.8 percent over the past 12 months.

The price indexes for imports from Mexico and from Canada both rose last month, increasing 0.8 percent and 0.3 percent, respectively. For the year ended in January, import prices from Mexico were up 4.1 percent and prices of imports from Canada increased 10.3 percent.

In contrast, import prices from Japan and from China declined in January, decreasing 0.2 percent and 0.1 percent, respectively. Over the past year, import prices from Japan were up 0.7 percent, whereas prices for imports from China fell 0.7 percent.

Import and Export Services

Import air passenger fares declined 0.7 percent in January, led by an 8.8 percent drop in Asian fares. Despite this decline, import air passenger fares rose 6.5 percent for the year ended in January. Export air passenger fares advanced for the third consecutive month, increasing 5.2 percent in January. The index rose 10.3 percent over the past 12 months.

ANNOUNCEMENT OF CHANGES IN THE U.S. IMPORT AND EXPORT PRICE INDEXES

Beginning with the January 2005 data in this release, the list of localities for the Import Price Indexes by Locality of Origin, found in Table 7, have been expanded to include the following regions: France, Germany, the United Kingdom, Mexico, the Pacific Rim, China, the Association of Southeast Asian Nations, and the Asia Near East Countries. Each new index series has been published back to December 2003, which equals 100. In addition, the Inbound Ocean Liner Freight Indexes are now published on a monthly basis rather than a quarterly basis and have been moved to Table 11.