May 2006 U.S. Import and Export Price Indexes

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- MAY 2006 -

The U.S. Import Price Index advanced 1.6 percent in May, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Import prices rose for the second consecutive month as higher petroleum and nonpetroleum prices both contributed to the May increase. Export prices rose 0.7 percent in May following a 0.6 percent advance the previous month.

Import Goods

The 1.6 percent rise in May followed a 2.1 percent increase in April, and marked the largest 2-month jump for the index since October 1990. A 5.2 percent rise in petroleum prices and a 0.6 percent advance in nonpetroleum prices both contributed to the overall increase in May. The advance in petroleum prices was the third consecutive monthly increase for the index, but was less than half the 11.5 percent jump recorded in April. Petroleum prices rose 45.7 percent for the year ended in May. The 0.6 percent increase in nonpetroleum prices last month was the largest monthly change since October and followed a comparatively modest 0.1 percent advance in April. Over the past 12 months, nonpetroleum import prices rose 1.5 percent while overall import prices increased 8.3 percent.

The May increase in nonpetroleum prices was led by a 2.5 percent advance in prices for nonpetroleum industrial supplies and materials. That increase was primarily driven by a continued rise in metals prices, although higher prices for building materials and chemicals were also contributing factors. The price index for unfinished metals rose 7.8 percent in May, which was the largest monthly increase for that index since monthly publication began back in September 1988. Prices for nonpetroleum industrial supplies and materials rose 9.0 percent for the year ended in May.

Higher prices for consumer goods; foods, feeds and beverages; and automotive vehicles also contributed to the May increase in nonpetroleum prices. Consumer goods prices advanced 0.3 percent in May, but declined 0.1 percent over the past 12 months. Foods, feeds, and beverages prices rose 1.3 percent for the month and prices for automotive vehicles ticked up 0.1 percent. Over the past year, the price indexes for foods, feeds, and beverages and automotive vehicles increased 1.9 percent and 0.4 percent, respectively.

Capital goods prices were unchanged in May and down 1.6 percent for the May 2005-2006 period.

Export Goods

Export prices increased for the sixth consecutive month, rising 0.7 percent in May following a 0.6 percent advance in April. Higher nonagricultural prices and a turnaround in agricultural prices both contributed to the May increase. Agricultural prices rose 0.8 percent in May after falling in each of the three previous months, and were led by rising soybean prices. Despite the increase, prices for agricultural exports declined 1.4 percent for the year ended in May. Nonagricultural prices rose 0.6 percent in May after increasing 0.7 percent in April, and advanced 3.8 percent over the past year. Overall export prices rose 3.4 percent for the year ended in May.

The increase in nonagricultural prices was led by a 1.7 percent advance in nonagricultural industrial supplies and materials prices. Continued higher prices for metals and fuel, as well as an upturn in chemicals prices all contributed to the increase. The price index for nonagricultural industrial supplies and materials rose 11.6 percent over the past 12 months.

Prices for each of the major finished goods areas also rose in May; consumer goods prices increased 0.5 percent, and the price indexes for both capital goods and automotive vehicles ticked up 0.1 percent. For the year ended in May, consumer goods prices increased 1.0 percent, automotive vehicles prices increased 1.1 percent, and capital goods prices increased 0.2 percent.

Imports by Locality of Origin

Import prices from Mexico, from Canada, and from the European Union all rose in May, as higher petroleum prices contributed to the increases. The price index of imports from Mexico increased 1.8 percent for the month after rising 0.6 percent and 2.2 percent, respectively, in March and April. The index increased 8.1 percent for the year ended in May. Prices of imports from Canada and from the European Union also increased in May, rising 1.5 percent and 0.8 percent, respectively. Import prices from Canada advanced 9.0 percent over the past 12 months, while import prices from the European Union rose 3.1 percent for the same period.

In contrast, prices of imports from China declined 0.1 percent in May, while import prices from Japan were unchanged for the month. The price indexes for imports from China and from Japan have both trended down over the past year, falling 1.3 percent and 1.4 percent, respectively, over that period.

Import and Export Services

Export air passenger fares advanced 5.6 percent in May, the largest increase for the index since an 8.1 percent jump in July 2005. The May increase was led by an 11.0 percent rise in Asian fares. Despite that advance, export air passenger fares declined 2.5 percent over the past 12 months. Import air passenger fares also rose in May, increasing 1.1 percent following a sharp 5.7 percent jump the previous month. European fares rose by a comparatively modest 0.9 percent after rising 8.1 percent in April. Led by the recent increases, import air passenger fares rose 5.6 percent for the year ended in May.

Prices for import and export air freight both increased in May, rising 1.1 percent and 1.0 percent, respectively. Both indexes were unchanged for the previous month.

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.