February 2005 U.S. Import and Export Price Indexes

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- FEBRUARY 2005 -

The U.S. Import Price Index rose 0.8 percent in February, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was led by an advance in petroleum prices and followed a 0.7 percent rise in January. Export prices were unchanged in February after rising 0.9 percent the previous month.

Import Goods

Overall, import prices jumped for the second consecutive month in February, led again by rising petroleum prices. After declining 16.8 percent over the final two months of 2004, petroleum prices have resumed a nearly two- year upward trend, rising 3.9 percent in February and 3.4 percent in January. Import petroleum prices were up 29.6 percent for the year ended in February. In addition, nonpetroleum import prices increased for the fourth consecutive month, rising 0.2 percent in February after increasing 1.6 percent over the three previous months. Over the past year, prices of nonpetroleum imports rose 2.9 percent, while overall import prices advanced 6.1 percent.

Higher prices for foods, feeds, and beverages; for consumer goods; and for nonpetroleum industrial supplies and materials contributed to the February increase in nonpetroleum prices. The price index for foods, feeds, and beverages advanced 1.3 percent in February and 7.3 percent over the past 12 months. Consumer goods prices rose for the fifth consecutive month, rising 0.2 percent in February after increasing 0.5 percent in January. Prices for nonpetroleum industrial supplies and materials rose 0.3 percent for the second consecutive month. The increases continued the upward trend for the index over the past two years, albeit at a slower rate than that recorded over most of that period. The index advanced 11.3 percent for the year ended in February.

In contrast, the price indexes for capital goods and for automotive vehicles were both unchanged in February. Capital goods prices had been up in each of the previous three months, rising 0.8 percent over that period, the largest three-month change in almost ten years. Despite those increases, capital goods prices decreased 0.6 percent over the past 12 months. Automotive vehicle prices rose 1.5 percent over the same period.

Export Goods

Export prices were unchanged in February as decreasing agricultural prices were offset by a modest increase in nonagricultural prices. The price index for agricultural exports declined 0.9 percent in February, following a 0.6 percent increase in January. Lower prices for soybeans, corn, and fruit contributed to the February drop. Prices for agricultural exports decreased 8.2 percent over the past year. Nonagricultural prices continued to trend upward, although the 0.1 percent rise in February was the smallest monthly increase since the index last declined in June. For the February 2004-2005 period, nonagricultural export prices rose 4.7 percent while overall export prices were up 3.4 percent.

The uptick in nonagricultural prices was led by a modest 0.2 percent increase in the price index for nonagricultural industrial supplies and materials. Rising fuel prices more than offset lower prices for chemicals and metals. Nonagricultural industrial supplies and materials prices increased 14.4 percent over the past 12 months.

Each of the major finished goods areas either recorded no change or declined in February. Consumer goods prices decreased 0.1 percent after increasing 0.9 percent over the previous three months. Overall, prices of consumer goods rose 1.6 percent for the year ended in February. The price indexes for capital goods and for automotive vehicles were both unchanged in February. Prices for both capital goods and for automotive vehicles had posted increases in each of the four months prior to February and advanced 0.8 percent and 1.2 percent, respectively, over the past year.

Imports by Locality of Origin

The price indexes for imports from Canada, from Mexico, and from the European Union all rose in February, impacted in part by higher petroleum prices. Prices of imports from Canada rose 0.9 percent last month and 8.1 percent for the year ended in February. Import prices from Mexico increased 0.8 percent for the second month in a row and were up 4.6 percent over the past year. Prices of imports from the European Union continued to move up, rising 0.3 percent in February and 5.7 percent over the past 12 months.

Import prices from Japan also increased in February, edging up 0.1 percent following a 0.1 percent decline in January. The index increased 0.8 percent for the February 2004-2005 period.

In contrast, for the second consecutive month prices of imports from China were unchanged. The index of import prices from China had declined in each of the preceding five months and was down 0.5 percent for the year ended in February.

Import and Export Services

Import air passenger fares fell 0.6 percent in February, led for the second consecutive month by seasonal reductions in Asian fares. Despite recent declines, the index for overall import air passenger fares rose 6.0 percent for the year ended in February.

Export air passenger fares declined 4.6 percent in February, following increases in each of the previous three months. Air passenger fares from each of the major export regions declined in February, although decreasing Asian fares had the largest impact on overall prices. The index for overall export air passenger fares increased 9.1 percent over the past 12 months.