August 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.

- AUGUST 2005 -

The price index for U.S. imports increased 1.3 percent in August, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Rising petroleum prices led the increase for the third consecutive month. U.S. export prices declined 0.1 percent in August after a modest 0.1 percent upturn in July.

Hurricane Katrina

Hurricane Katrina struck Florida and the Gulf Coast after the August survey reference period and therefore did not affect the August import and export price indexes.

Import Goods

Import prices continued a steady upward trend in August, increasing 1.3 percent following advances of 1.2 percent and 0.8 percent in June and July, respectively. The August increase was the largest monthly gain since a 2.2 percent increase in March, and import prices rose 7.6 percent over the past year. Following the pattern of the prior two months, the August increase was driven by higher petroleum prices, which rose 7.1 percent. August marked the third consecutive month that the price index for petroleum imports recorded its highest level since the index was first published in 1982. Petroleum prices rose 42.5 percent over the past 12 months. Nonpetroleum prices were unchanged in August after decreasing 0.2 percent in each of the three preceding months. Despite those recent declines, nonpetroleum prices increased 1.8 percent for the year ended in August.

August nonpetroleum industrial supplies and materials prices increased 0.2 percent after rising 0.4 percent in July. Higher natural gas prices more than compensated for lower prices for metals and building materials. The price index for nonpetroleum industrial supplies and materials increased 5.6 percent over the August 2004-2005 period.

In contrast, consumer goods prices and foods, feeds, and beverages prices dipped in August. Prices for consumer goods fell 0.2 percent for the second consecutive month but rose 1.1 percent over the past 12 months. Foods, feeds, and beverages prices decreased a modest 0.1 percent in August following larger declines of 1.2 percent and 0.7 percent in June and July, respectively. Despite decreasing in each of the past five months, prices for foods, feeds, and beverages increased 5.5 percent over the past year.

The price indexes for capital goods and for automotive vehicles were unchanged in August. Capital goods prices decreased 0.4 percent over the past 12 months while prices of automotive vehicles rose 0.9 percent for the same period.

Export Goods

Prices of exports declined for the third time in the past four months, edging down 0.1 percent in August. Even with the recent decreases, export prices rose 3.1 percent over the past 12 months. Prices for both agricultural exports and nonagricultural exports contributed to the August decline, decreasing 0.6 percent and 0.1 percent, respectively. The decline in agricultural prices was the second consecutive monthly decrease after the index increased each of the four months prior to July. Agricultural prices advanced 6.6 percent for the year ended in August. The modest drop in nonagricultural prices followed a 0.1 percent uptick in July, and prices of nonagricultural exports rose 2.7 percent over the past year.

The August decrease in nonagricultural exports was led by a second consecutive 0.4 percent decline in prices for capital goods, which make up nearly 40 percent of overall exports. As was the case in July, the drop in capital goods prices was driven by lower prices for computers, peripherals and semiconductors. The price index for capital goods decreased 0.2 percent over the past 12 months.

In contrast, the price index for nonagricultural industrial supplies and materials increased 0.3 percent in August, as higher prices for fuel and chemicals more than offset lower metals prices. The August increase in nonagricultural industrial supplies and materials prices followed a 0.8 percent rise in July, and the index rose 9.2 percent over the past year.

Prices for automotive vehicles and for consumer goods were unchanged in August. Over the past 12 months, automotive vehicle prices increased 0.9 percent and consumer goods prices rose 0.4 percent.

Imports by Locality of Origin

Import prices from Canada and from the European Union both rose in August, increasing 1.3 percent and 0.1 percent, respectively. In each case, a petroleum-driven advance in nonmanufactured goods more than offset lower prices for manufactured goods. Prices of imports from Canada rose 5.9 percent for the year ended in August, and import prices from the European Union increased 4.1 percent over the same period.

The price index of imports from Mexico rose 1.2 percent in August, the eighth consecutive month the index increased. The advance was the largest monthly gain since March and was also led by higher petroleum prices. Import prices from Mexico rose 9.8 percent over the past 12 months.

In contrast, prices of imports from Japan and from China declined in August, falling 0.2 percent and 0.1 percent, respectively. The price index of imports from Japan decreased for the third time in the past four months, but increased 0.1 percent over the past year. Import prices from China fell for the third month in a row and declined 1.3 percent for the year ended in August.

Import and Export Services

Import air passenger fares declined 0.8 percent in August after rising 10.2 percent and 3.0 percent in June and July, respectively. The index increased 3.8 percent over the past 12 months. In contrast, export air passenger fares increased 5.2 percent, led by a 16.6 percent jump in Asian fares. Export air passenger fares rose 11.0 percent over the past year.