November 2006 U.S. Import and Export Price Indexes

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- NOVEMBER 2006 -

The U.S. Import Price Index rose 0.2 percent in November, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was led by a 0.7 percent advance in nonpetroleum prices, which more than offset a decline in the price index for petroleum. Export prices increased 0.4 percent in November, following decreases in each of the two previous months.

Import Goods

Import prices rose 0.2 percent in November following the petroleum- driven declines of 2.3 percent and 2.2 percent in October and September, respectively. The index for overall imports increased 1.2 percent over the past 12 months. Petroleum prices fell a more modest 1.6 percent in November compared to the double-digit declines recorded in the prior two months. Despite the recent downturn, petroleum prices advanced 1.5 percent for the year ended in November. Nonpetroleum prices resumed an upward trend in November, following a 0.5 percent decline in October, rising 0.7 percent for the month and 1.3 percent over the past year.

A 2.9 percent increase in the price index for nonpetroleum industrial supplies and materials was the largest contributor to the higher nonpetroleum prices in November. That increase was largely attributable to a sharp upturn in natural gas prices. Excluding all fuels, import prices rose a modest 0.1 percent. The November increase in nonpetroleum industrial supplies and materials prices followed a 2.7 percent downturn in October that was caused in part by a large decline in natural gas prices. Foods, feeds, and beverages prices also advanced in November, rising 0.4 percent. Prices for foods, feeds, and beverages increased 5.0 percent for the November 2005-2006 period.

In contrast, prices for each of the major finished goods areas were unchanged in November. Capital goods prices have remained unchanged since a 0.1 percent up-tick in July and rose a modest 0.2 percent overall for the year ended in November. The price indexes for consumer goods and automotive vehicles were also up over the past 12 months, rising 1.1 percent and 0.7 percent, respectively.

Export Goods

Prices for exports increased 0.4 percent in November after falling 0.3 percent in October and 0.4 percent in September. The November increase resumed a year-long upward trend for the index, which advanced 3.9 percent over the past 12 months. A 4.4 percent increase in agricultural prices led the November advance and was the largest one-month gain for that index since prices of agricultural exports rose 5.4 percent in September 2003. The November increase in agricultural prices was led by higher prices for corn, soybeans, and wheat. The agricultural exports price index advanced 10.4 percent for the year ended in November. Nonagricultural prices also increased in November, rising 0.1 percent after decreasing 0.5 percent and 0.4 percent in October and September, respectively. Despite those declines, the index rose 3.4 percent over the past year.

The price index for nonagricultural industrial supplies and materials rose 0.3 percent in November. Higher prices for metals and fuel were partially offset by falling prices for chemicals. Prices for nonagricultural industrial supplies and materials increased 8.4 percent over the past 12 months. A 0.1 percent rise in capital goods prices also contributed to the increase in nonagricultural prices. The November increase followed a 0.2 percent advance in each of the prior two months and the index rose 1.2 percent for the November 2005-2006 period.

In contrast, automotive vehicle prices edged down 0.1 percent in November, the first decrease for the index since a 0.1 percent dip in December 2005. Despite the downturn, prices for automotive vehicles increased 1.2 percent for the year ended in November.

Consumer goods prices were unchanged in November and up 2.0 percent over the past 12 months.

Imports by Locality of Origin

Prices for imports from Canada rose 1.7 percent in November, led by higher fuel prices. The increase followed declines of 3.9 percent and 2.3 percent in October and September, respectively. Despite the November increase, import prices from Canada fell 3.1 percent over the past year.

In contrast, the price indexes for imports from Mexico and from Japan each decreased for the third consecutive month in November. Prices for imports from Mexico declined a modest 0.2 percent after decreases of 1.7 percent in October and 2.9 percent in September; however, the index rose 6.5 percent for the year ended in November. Import prices from Japan fell 0.1 percent in November and 1.5 percent over the past 12 months.

Import prices from the European Union and from China were each unchanged in November. Prices for imports from the European Union increased 5.1 percent over the past year, while the price index for imports from China declined 1.3 percent over the same period.

Import and Export Services

Import air passenger fares fell for the fourth consecutive month, declining 3.3 percent in November. The decrease was driven by a 4.4 percent seasonal drop in European fares. Notwithstanding the recent decreases, the index rose 7.7 percent for the year ended in November. Export air passenger fares also fell in November, declining 2.6 percent, and like imports were led by lower European fares. The index for export air passenger fares increased 6.4 percent over the past year.

Import air freight prices fell 2.3 percent in November following a 0.2 percent drop the previous month. A 4.5 percent decrease in European air freight prices was the largest contributor to the decline. The price index for export air freight also fell for the second consecutive month, decreasing 0.5 percent in November after a 0.4 percent drop in October.