September 2005 U.S. Import and Export Price Indexes

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- SEPTEMBER 2005 -

U.S. import prices increased 2.3 percent in September, the Bureau of Labor Statistics of the U.S. Department of Labor reported today, the largest monthly advance since October 1990. Higher prices for both petroleum and nonpetroleum imports contributed to the increase. Export prices rose 0.9 percent in September following a modest 0.1 percent decline in August.

Gulf Coast Hurricanes

Hurricanes Katrina and Rita had virtually no impact on data collection efforts or survey response rates and no changes in estimation procedures were necessary.

Import Goods

September import prices rose 2.3 percent following three consecutive 1.2 percent increases. For the fourth month in a row, the price index for petroleum recorded its highest level since the index was first published in 1982, moving up a further 7.3 percent in September. Petroleum prices rose 48.9 percent over the past 12 months after increasing 53.5 percent for the September 2003-2004 period. In addition, nonpetroleum import prices increased 1.2 percent in September, the largest one-month rise for that index since monthly publication began in December 1988. Import prices excluding all fuels rose 0.4 percent for the month. Prices for nonpetroleum imports advanced 3.0 percent for the year ended in September, while overall import prices rose 9.9 percent over the same period.

A 5.0 percent increase for nonpetroleum industrial supplies and materials prices drove the advance in nonpetroleum prices. The rise in nonpetroleum industrial supplies and materials prices was led by a jump in natural gas prices, although higher prices for chemicals, building materials, and some metals were also contributing factors. The price index for nonpetroleum industrial supplies and materials increased 11.3 percent over the past year.

Prices for consumer goods and for foods, feeds, and beverages also rose in September, increasing 0.3 percent and 0.7 percent, respectively. The increase in consumer goods prices followed 0.2 percent declines in July and August. For the year ended in September, the index rose 1.4 percent. The price index for foods, feeds, and beverages increased for the second consecutive month and 5.6 percent over the past year. Prices for automotive vehicles ticked up 0.1 percent for the second month in a row, and rose 0.9 percent for the year ended in September.

Capital goods prices were unchanged in September after recording no change in August. Led by lower computer prices, prices of capital goods fell 0.3 percent over the past 12 months.

Export Goods

Export prices rose 0.9 percent in September as higher nonagricultural prices more than offset a decline in agricultural prices. The September increase was the largest monthly gain since April 1995. Nonagricultural export prices rose 1.1 percent in September, the largest increase for that index since October 1990. For the year, the index rose 3.8 percent. In contrast, the price index for agricultural exports fell 1.4 percent in September after a 0.5 percent decrease in August. Despite the recent declines, agricultural prices increased 3.4 percent over the past 12 months. For the same period, overall export prices rose 3.8 percent.

The price index for nonagricultural industrial supplies and materials increased 3.6 percent in September, led by an 18.1 percent jump in export fuel prices. Higher prices for plastics, other chemicals, and metals also contributed to the increase. Nonagricultural industrial supplies and materials prices rose 12.5 percent for the year ended in September.

Each of the major finished goods categories increased in September. Consumer goods prices advanced 0.3 percent for the month and 0.9 percent over the past year. Prices for capital goods and for automotive vehicles each rose 0.1 percent in September. Despite the modest upturn, capital goods prices declined 0.1 percent over the past 12 months, while prices for automotive vehicles increased 1.2 percent.

Imports by Locality of Origin

Import prices from Canada rose 4.5 percent in September, the largest monthly gain for the index since January 2001. The increase was led by a 13.4 percent jump in nonmanufactured goods that resulted largely from higher fuel prices. Prices of imports from Canada rose 12.2 percent for the September 2004-2005 period.

The price indexes of imports from the European Union and from Mexico were also impacted by rising fuel prices, increasing 1.4 percent and 1.0 percent, respectively, in September. The increase in import prices from Europe followed 0.1 percent declines in July and August, while the index rose 5.0 percent over the past 12 months. Import prices from Mexico increased 8.5 percent for the year ended in September.

Prices for imports from Japan also advanced in September, rising 0.2 percent for the month and 0.8 percent over the past year. In contrast, import prices from China declined for the third time in the past four months, decreasing 0.2 percent in September. Prices of imports from China declined 1.2 percent over the past 12 months.

Import and Export Services

Import air passenger fares declined 5.3 percent in September, following a 0.8 percent decrease in August. Notwithstanding the recent declines, the index rose 2.5 percent for the year ended in September. The index for export air passenger fares also decreased in September, falling 9.9 percent. Export fares had increased in each of the previous two months, up 8.1 percent and 5.2 percent, respectively, and advanced 7.2 percent over the past year.

Prices for import air freight increased 0.9 percent between June and September after a downturn of 0.2 percent the previous quarter. The index rose 7.9 percent over the past year. Export air freight prices advanced 3.1 percent in the third quarter of 2005. The price index for export air freight has increased each quarter since the June-September period of 2003, and rose 13.2 percent for the year ended in September.