October 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.

- OCTOBER 2005 -

Import prices declined 0.3 percent in October, the Bureau of Labor Statistics of the U.S. Department of Labor reported today, after increasing 2.3 percent in September. A downturn in petroleum prices more than offset higher nonpetroleum prices. The U.S. Export price index rose 0.6 percent in October following a 0.8 percent advance the previous month.

Import Goods

The 0.3 percent decline in the price index of U.S. imports marked the first decrease for the index since May and only the second monthly drop recorded in 2005. Prior to the October decline, import prices rose 6.3 percent between May and September, driven by a 36.2 percent jump in petroleum prices over that period. In October, petroleum prices decreased 4.4 percent, but still rose 30.9 percent over the past 12 months. In contrast, nonpetroleum prices continued to rise, increasing 0.8 percent last month after advancing 1.0 percent in September. For the year ended in October, prices of nonpetroleum imports rose 3.7 percent while overall import prices increased 8.1 percent.

The October advance in nonpetroleum prices was driven by a 4.4 percent increase in the price index for nonpetroleum industrial supplies and materials. For the second consecutive month, a sharp rise in natural gas prices led the increase. Excluding prices for petroleum and for natural gas, prices for industrial supplies and materials increased 1.6 percent and overall import prices rose 0.3 percent. Higher prices for chemicals, metals, and building materials also contributed to the increase in prices for nonpetroleum industrial supplies and materials, which increased 16.1 percent over the past 12 months. Foods, feeds, and beverages prices rose 1.1 percent in October, led by higher prices for fish, vegetables, and meat. Prices for foods, feeds, and beverages advanced 5.2 percent for the year ended in October.

In contrast, prices for capital goods and for consumer goods declined in October, falling 0.3 percent and 0.1 percent, respectively. Lower computer prices again led the decline in the price index for capital goods, which decreased 0.5 percent for the year ended in October. Consumer goods prices fell for the third time in the past four months but increased 1.2 percent over the past year. Automotive vehicles prices were unchanged in October and increased 0.6 percent over the past 12 months.

Export Goods

Export prices increased 0.6 percent in October, as rising prices for both agricultural exports and nonagricultural exports contributed to the advance. The price index for agricultural exports increased 0.2 percent following declines of 0.6 percent and 1.3 percent, respectively, in August and September. In October, higher wheat prices and a turnaround in corn prices more than compensated for an ongoing decline in soybean prices. Agricultural prices increased 4.8 percent over the past year. Nonagricultural prices rose 0.6 percent in October after a 1.1 percent increase in September. Prices for nonagricultural exports advanced 3.5 percent over the past 12 months while overall export prices rose 3.6 percent for the same period.

The increase in nonagricultural export prices was led by a 1.7 percent advance in the price index for nonagricultural industrial supplies and materials. In October, increasing prices for metals, plastic materials, and industrial organic chemicals all contributed to higher nonagricultural industrial supplies and materials prices, which increased 11.3 percent over the past 12 months.

Prices for each of the major finished goods categories rose in October. Capital goods prices increased 0.1 percent despite continued declines in computer prices. The modest October advance was the first increase since a similar 0.1 percent uptick in February. Prices of capital goods declined 0.3 percent over the past 12 months. Prices for consumer goods and for automotive vehicles rose 0.3 percent and 0.2 percent, respectively, last month. For the year ended in October, consumer goods prices increased 1.2 percent and prices for automotive vehicles advanced 1.1 percent.

Imports by Locality of Origin

The price index of imports from Canada increased 3.6 percent in October following a 4.3 percent advance in September. Import prices from Canada have only recorded one monthly decline in 2005 and rose 15.5 percent over the past 12 months.

Import prices from Mexico and from the European Union each decreased in October, falling 0.5 percent and 0.3 percent, respectively. Both indexes were impacted by a downturn in petroleum prices. Despite the October declines, import prices from Mexico increased 5.4 percent for the year ended in October, while prices of imports from the European Union rose 4.2 percent over the same period.

Prices of imports from China increased a modest 0.1 percent for the second time in three months. Despite the advance, the index decreased 0.9 percent for the October 2004-2005 period. In contrast, import prices from Japan fell 0.1 percent in October, but increased 0.4 percent over the past year.

Import and Export Services

Import air passenger fares declined for the third consecutive month in October, decreasing 4.4 percent. The October decline was led by a 6.7 percent drop in European fares. The export air passenger fares index also fell, declining 2.8 percent in October following a 9.9 percent drop the previous month. Notwithstanding the recent declines, import air passenger fares increased 2.7 percent over the past 12 months, while export air passenger fares rose 6.3 percent.

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

Beginning with the release of January 2006 data on February 16, in addition to the existing tables, the U.S. Import and Export Price Indexes will also be published by the North American Industrial Classification System (NAICS). The new NAICS index series will begin with December 2005, which will be set equal to 100. In addition, all of the services indexes currently found in tables 8-11 will be published on a monthly basis and displayed in one composite table.