April 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.

- APRIL 2006 -

The U.S. Import Price Index rose 2.1 percent in April, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was led by the largest rise in petroleum prices in over a year. Export prices advanced 0.6 percent, the fifth consecutive monthly increase for the index.

Import Goods

Import prices increased 2.1 percent in April after declines of 0.6 percent and 0.2 percent, respectively, in February and March. The advance was driven by an 11.5 percent jump in petroleum prices which followed a comparatively modest 0.5 percent rise the previous month. The April increase in petroleum prices was the largest for the index since a 13.4 percent rise in March 2005. Petroleum prices rose 32.5 percent over the past 12 months. Nonpetroleum prices were unchanged in April after decreases in each of the previous two months that largely resulted from lower natural gas prices. For the year ended in April, nonpetroleum prices increased 0.8 percent while overall import prices advanced 5.9 percent.

Prices for nonpetroleum industrial supplies and materials rose 0.5 percent in April as higher metals prices more than offset lower prices for natural gas, chemicals, and lumber. Nonpetroleum industrial supplies and materials prices increased 6.1 percent for the year ended in April. The price index for automotive vehicles also rose, increasing 0.2 percent for the month and 0.3 percent over the past year.

In contrast, prices for foods, feeds, and beverages and for consumer goods declined in April, falling 0.9 percent and 0.1 percent, respectively. Lower vegetable prices led the decrease in the price index for foods, feeds, and beverages, which still increased 0.3 percent over the past 12 months. Consumer goods prices declined for the second consecutive month and fell 0.3 percent for the year ended in April.

The price index for capital goods was unchanged in April and down 1.5 percent over the past year.

Export Goods

The price index of overall exports rose 0.6 percent in April as a 0.7 percent increase in nonagricultural prices more than offset a 0.6 percent decline in agricultural prices. Nonagricultural prices continued the upward trend over each of the past five months, and increased 2.5 percent for the year ended in April. Overall export prices rose 2.4 percent for the same period.

The increase in nonagricultural prices was led by a 2.0 percent advance in prices for nonagricultural industrial supplies and materials, the largest monthly increase since October. A sharp rise in fuel prices drove the increase, but higher metals prices were also a contributing factor. The price index for nonagricultural industrial supplies and materials advanced 8.0 percent over the past 12 months.

Prices for capital goods and for automotive vehicles also rose in April, advancing 0.4 percent and 0.1 percent, respectively. The April increase in capital goods prices matched the January rise, which was the largest monthly advance since April 1995. Despite the recent increase, capital goods prices only rose 0.2 percent over the past 12 months. Automotive vehicle prices increased 1.0 percent over the same period of time. Prices for consumer goods recorded no change last month and rose 0.3 percent for the year ended in April.

In contrast, agricultural export prices fell for the fifth time in the past six months and decreased 0.3 percent over the April 2005-2006 period. Lower soybean prices were the largest contributor to the April decline.

Imports by Locality of Origin

The price indexes for imports from Mexico, Canada, and the European Union were all driven up in April by higher petroleum prices. Import prices from Mexico rose 2.3 percent in April and 6.9 percent over the past 12 months. Prices for imports from Canada reversed the downward trend of the past two months, rising 1.2 percent; the index advanced 5.6 percent over the past year. Import prices from the European Union increased 0.3 percent following a 0.3 percent decline in March, and rose 2.0 percent for the year ended in April.

In contrast, prices for imports from Japan and from China declined in April, decreasing 0.2 percent and 0.1 percent, respectively. Import prices from Japan resumed a downward trend after a modest 0.1 percent uptick in March. For the year ended in April, prices for imports from Japan fell 1.4 percent and import prices from China declined 1.1 percent.

Import and Export Services

Import air passenger fares rose 5.7 percent in April, the largest monthly increase for the index since a 10.2 percent jump in June 2005. The increase was led by an 8.1 percent rise in European fares, and, driven by the April increase, overall import air passenger fares advanced 3.8 percent for the year ended in April. Export air passenger fares also rose because of higher European fares, rising 0.7 percent in April. Despite the increase, the index declined 1.3 percent over the past year.

The price indexes for both import and export air freight were unchanged in April. Import air freight prices declined 0.5 percent in March, while export air freight prices increased 0.2 percent.

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

Due to budget constraints, the U.S. Import and Export Price Indexes classified by the Standard International Classification System (SITC), currently found in Tables 7 and 8, will no longer be published beginning with the release of July 2006 data on August 11.