January 2006 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 2006 -

The U.S. Import Price Index rose 1.3 percent in January, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase followed declines of 1.8 percent and 0.1 percent in November and December, and was primarily led by an increase in petroleum prices. Export prices advanced 0.7 percent in January after a modest 0.1 percent rise the previous month.

Import Goods

The 1.3 percent advance in import prices was the largest monthly increase since a 2.1 percent jump in September. Petroleum prices rose 6.4 percent in January, reversing the trend over the past three months when the index declined 12.3 percent. Despite decreasing over the last three months of 2005, petroleum prices increased 48.3 percent for the January 2005-2006 period. The price index for nonpetroleum imports increased for the second consecutive month in January, rising 0.2 percent following a 0.1 percent uptick in December. Prices for nonpetroleum imports advanced 2.4 percent for the year ended in January, while overall import prices rose 8.8 percent over the same period.

A 0.9 percent advance in nonpetroleum industrial supplies and materials prices was the largest contributor to the January increase in nonpetroleum prices. Higher prices for metals, chemicals, and building materials all factored into the January increase in prices for nonpetroleum industrial supplies and materials, which rose 12.4 percent over the past year. The price indexes for foods, feeds, and beverages and for consumer goods also rose in January, increasing 1.2 percent and 0.2 percent, respectively. Both indexes increased over the past 12 months; foods, feeds, and beverages prices rose 6.9 percent, while consumer goods prices were virtually unchanged, ticking up 0.1 percent.

In contrast prices for capital goods and for automotive vehicles declined in January, each falling 0.1 percent. Prices for capital goods decreased 1.6 percent, however, over the past year, and continued to be led down by lower computer prices. Automotive vehicle prices rose for the year ended in January, increasing 0.3 percent.

Export Goods

Export prices rose 0.7 percent in January as 0.7 percent increases for both agricultural prices and for nonagricultural prices contributed to the increase. The advance in agricultural prices followed declines in three of the previous four months and was led by higher prices for corn and soybeans. Agricultural prices rose 4.7 percent over the past year. Prices for nonagricultural exports increased 2.4 percent over the past 12 months, while overall export prices rose 2.7 percent for the same period.

Nonagricultural industrial supplies and materials prices advanced 1.8 percent in January, continuing the upward trend for this index. In January, higher prices for fuel, metals, and chemicals all contributed to the increase. For the year, the index rose 8.5 percent.

All of the major finished goods areas also factored into the January increase in export prices. The price index for capital goods, which makes up about 40.6 percent of exports, increased 0.2 percent for the month, but declined 0.6 percent over the past 12 months. Prices for consumer goods and for automotive vehicles increased 0.5 percent and 0.2 percent, respectively, in January. Over the past year, consumer goods prices advanced 0.7 percent and automotive vehicles rose 1.0 percent.

Imports by Locality of Origin

Prices of imports from Mexico, from the European Union, and from Canada all increased in January, led by higher petroleum prices. Import prices from Mexico rose 2.2 percent for the month and 6.6 percent over the past year. The price indexes of imports from the European Union and from Canada advanced 1.7 percent and 1.2 percent, respectively, in January. Prices of imports from the European Union increased 3.4 percent for the year ended in January, while import prices from Canada rose 12.9 percent over the same period.

The price indexes of imports from China and from Japan each declined 0.2 percent in January. Prices of imports from China fell 0.2 percent over the past 12 months. Import prices from Japan fell for the fourth consecutive month and declined 0.9 percent for the January 2005-2006 period.

Import and Export Services

Import air passenger fares declined for the fifth time in the past six months, decreasing 1.3 percent in January. A 13.7 percent drop in Asian fares led the decline. Despite the recent decreases, import air passenger fares rose 3.6 percent for the year ended in January. In contrast, export air passenger fares increased 3.4 percent in January, yet declined 6.0 percent over the past 12 months.

The price indexes for import air freight and export air freight, which are being published on a monthly basis for the first time with this release, declined 1.8 percent and 0.3 percent, respectively, in January. Lower prices for air freight from both Europe and from Asia contributed to the overall decrease in import air freight prices.

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

Beginning with the release of January 2006 data this month, 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 begin with December 2005, which is set equal to 100. More detailed information on how the new NAICS indexes differ from the other index classification systems can be found in the technical note on page 17. In addition, all of the services indexes previously found in tables 8-11 are now published on a monthly basis and displayed in table 10.