July 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.

- JULY 2006 -

The U.S. Import Price Index increased 0.9 percent in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. A 4.7 percent advance in petroleum prices more than offset a modest 0.1 percent decline in nonpetroleum prices. The price index of overall exports rose 0.4 percent in July following a 0.7 percent increase in June.

Import Goods

Import prices rose 0.9 percent in July, led up for the third time in the past four months by rising petroleum prices. The price index for import petroleum, which advanced 11.3 percent in April and 6.4 percent in May, increased 4.7 percent in July following a 1.4 downturn in June. For the year, petroleum prices rose 29.6 percent. In contrast, nonpetroleum prices edged down a modest 0.1 percent in July after increasing in each of the previous three months. Prices for nonpetroleum imports advanced 2.3 percent over the past 12 months, while overall import prices rose 7.0 percent for the same period.

The small July decrease in nonpetroleum prices was led by a downturn in the price index for nonpetroleum industrial supplies and materials, which fell 0.9 percent following increases of 2.8 percent and 1.3 percent, respectively, in May and June. The drop in nonpetroleum industrial supplies and materials prices was driven by a turnaround in unfinished metal prices, although lower prices for natural gas and building materials also contributed to the July decline. Higher chemicals and finished metal prices, however, served to offset some of the decline in nonpetroleum industrial supplies and materials.

A modest 0.1 percent decrease in consumer goods prices also contributed to lower July prices for nonpetroleum imports. Consumer goods prices were unchanged over the past 12 months.

In contrast, the price indexes for automotive vehicles, capital goods, and foods, feeds, and beverages all rose in July. Automotive vehicle prices increased 0.2 percent for the second consecutive month, and advanced 0.7 percent for the year ended in July. Capital goods prices and prices for foods, feeds, and beverages each ticked up 0.1 percent for the month. The increase in capital goods prices followed a 0.3 percent rise in June, but despite those increases, the index declined 0.4 percent over the past year. Prices for foods, feeds, and beverages rose 3.9 percent for the July 2005-2006 period.

Export Goods

Export prices increased 0.4 percent in July, as both agricultural prices and nonagricultural prices contributed to the advance. Prices for agricultural exports rose 1.9 percent after a 2.5 percent increase in June. Higher prices for wheat, fruit, and soybeans all contributed to the increase. Agricultural prices advanced 1.9 percent over the past year, as the recent increases more than offset lower prices at the end of 2005 and the beginning of 2006. Nonagricultural prices continued a steady upward trend in July, rising 0.2 percent. Over the past 12 months, nonagricultural prices increased 4.6 percent, and overall export prices rose a similar 4.4 percent.

The advance in nonagricultural prices was again led by rising prices for nonagricultural industrial supplies and materials, which increased 0.6 percent. The latter increase was led by higher prices for chemicals, plastic materials, and fuels. However, lower metals prices were an offsetting factor and prices for nonagricultural industrial supplies and materials rose at a smaller rate than in the previous three months, when the increases ranged between 1.7 and 2.0 percent. The index increased 13.5 percent for the year ended in July. Prices for consumer goods and automotive vehicles rose 0.4 percent and 0.3 percent, respectively, contributing to the overall increase in nonagricultural prices. Consumer goods prices increased 2.5 percent over the past year, while prices for automotive vehicles advanced 1.6 percent.

Capital goods prices fell a modest 0.1 percent for the second consecutive month, but increased 0.3 percent over the past 12 months.

Imports by Locality of Origin

Prices for imports from Canada and from the European Union increased 0.2 percent in July after each index recorded little movement the previous month. Both increases were driven by higher petroleum prices. Import prices from Canada resumed an upward trend following a 0.1 percent downturn in June, and increased 8.0 percent over the past 12 months. The price index for imports from Europe was up 5.5 percent for the year ended in July.

Rising petroleum prices also led the 1.7 percent advance in import prices from Mexico. The increase followed a 0.3 percent downturn in June, and contributed to an 8.4 percent rise in the price index of imports from Mexico over the past year.

Import prices from both Japan and from China declined 0.2 percent in July. The drop in prices from Japan resumed a downward trend after the index rose 0.2 percent in June and remained unchanged in May. Prices for imports from Japan declined 1.8 percent over the past 12 months. The price index for imports from China fell for the fifth consecutive month and decreased 1.3 percent over the past year.

Import and Export Services

Import air passenger fares increased 2.0 percent in July following an 11.4 percent jump in June. The July increase was led by higher Asian and Latin American fares. Export air passenger fares rose 5.0 percent in July after a 0.1 percent uptick in June. For the year ended in July, import air passenger fares advanced 5.6 percent, while export air passenger fares declined 0.7 percent.

Both import and export air freight prices decreased in July following three consecutive increases. Prices for import air freight declined 1.2 percent as air freight prices from both Asia and Europe fell. Export air freight prices edged down 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), previously found in Tables 7 and 8, will no longer be published beginning with this release of the July 2006 data.