June 2006 U.S. Import and Export Price Indexes

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- JUNE 2006 -

The U.S. Import Price Index rose 0.1 percent in June, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was led by a 0.4 percent advance in nonpetroleum prices which more than offset a 1.4 percent downturn in petroleum prices. Export prices increased 0.8 percent in June after rising 0.6 percent the previous month.

Import Goods

Import prices rose for the third consecutive month, although the 0.1 percent advance in June was modest compared to the 2.0 percent and 1.7 percent increases in April and May, respectively. The June rise was dampened by a 1.4 percent decrease in petroleum prices, which had risen 17.8 percent over the previous two months. Despite the June downturn, petroleum prices rose 32.6 percent over the past year. In contrast, the price index for nonpetroleum import prices advanced 0.4 percent in June following increases of 0.1 percent in April and 0.7 percent in May. For the year ended in June, nonpetroleum import prices rose 2.2 percent while overall import prices increased 7.2 percent.

A 1.1 percent rise in nonpetroleum industrial supplies and materials prices was the largest contributor to the June increase in prices for nonpetroleum imports. Continued price rises for most metals more than offset lower prices for natural gas and building materials. The price index for nonpetroleum industrial supplies and materials increased 11.2 percent over the past 12 months.

Each of the major finished goods areas also contributed to the June rise in nonpetroleum import prices. Capital goods prices increased 0.3 percent, the first upward movement for the index in five months and the largest monthly advance since the index rose 0.3 percent in January 2005. Notwithstanding the June upturn, capital goods prices fell 1.1 percent for the past year. Automotive vehicle prices increased 0.2 percent, the largest one-month gain since October 2004. Prices of automotive vehicles rose 0.5 percent for the year ended in June. Consumer goods prices advanced 0.1 percent in June, but were down 0.1 percent over the past 12 months.

In contrast, food, feeds, and beverages prices declined 0.1 percent in June, led downward by lower prices for fruit and coffee. Prices for foods, feeds, and beverages increased 3.4 percent for the June 2005-2006 period.

Export Goods

Export prices rose 0.8 percent in June, the largest one-month increase since September 2005. Both agricultural and nonagricultural export prices contributed to the overall increase. Agricultural prices advanced 2.4 percent, the largest monthly increase for the index since March 2005. Higher prices for wheat, corn, and vegetables all impacted the increase. Despite the June rise, agricultural prices ticked down 0.2 percent over the past year. Nonagricultural prices rose 0.6 percent in June, continuing the recent upward trend for the index. Prices of nonagricultural exports rose 4.6 percent for the year ended in June, while overall export prices increased 4.2 percent for the same period.

The increase in nonagricultural prices was led by a 1.9 percent advance in the price index for nonagricultural industrial supplies and materials. Higher prices for metals, which rose sharply for the second consecutive month, and chemicals outweighed a downturn in fuel prices. Higher prices for consumer goods and automotive vehicles, up 0.3 percent and 0.1 percent, respectively, also contributed to the increase in nonagricultural export prices. For the year ended in June, prices for consumer goods rose 1.6 percent, while automotive vehicle prices advanced a similar 1.4 percent.

Capital goods prices were unchanged in June after increasing in each of the previous three months. The index rose 0.2 percent over the past year.

Imports by Locality of Origin

Prices of imports from Canada declined 0.6 percent in June following increases of 1.5 percent and 2.4 percent for the previous two months. Lower fuel prices drove nonmanufactured prices down 3.3 percent, more than offsetting a 0.2 percent increase in manufactured prices. Import prices from Canada rose 8.4 percent for the year ended in June.

Prices of imports from the European Union and from Mexico each edged up 0.1 percent in June. The price index of imports from the European Union advanced 5.6 percent over the past 12 months, while import prices from Mexico increased 7.5 percent for the same period.

Import prices from Japan increased 0.3 percent in June. The advance in import prices from Japan was the first monthly increase since July 2005 and the index declined 1.1 percent over the past year. Prices of imports from China fell 0.1 percent in June and 1.4 percent over the past 12 months.

Import and Export Services

Import air passenger fares jumped 11.4 percent in June, the largest one- month increase for the index since monthly publication began in December 2000. Higher European and Asian fares both contributed to the increase. Led by the June increase, import air passenger fares rose 6.7 percent over the past year. Export air passenger fares ticked up a comparatively modest 0.1 percent in June, and rose 2.3 percent over the past 12 months.

June import air freight prices rose 3.2 percent, the third consecutive monthly increase for the index. Prices for import air freight advanced 6.0 percent for the June 2005-2006 period. Export air freight prices increased 0.9 percent in June and 4.9 percent over the past year.

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.