May 2007 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.

- MAY 2007 -

The U.S. Import Price Index rose 0.9 percent in May, the Bureau of Labor Statistics of the U.S. Department of Labor reported today, following a 1.4 percent advance in April. Higher prices for both petroleum and nonpetroleum imports contributed to the increase. Export prices also advanced in May, rising 0.1 percent after a 0.3 percent increase the previous month.

Import Goods

Prices for overall imports increased 0.9 percent in May after rising 3.3 percent over the previous three months. Petroleum prices rose 2.7 percent in May after increases of 6.6 percent and 8.7 percent, respectively, in April and March. Despite the recent increases, the price index for petroleum imports declined 4.6 percent over the past year. Prices for nonpetroleum imports also increased in May, rising 0.5 percent, following a 0.3 percent advance in April. The May increase was the largest since a similar 0.5 percent rise in December. Nonpetroleum import prices increased 2.8 percent over the past 12 months while overall import prices rose 1.1 percent over the past year.

The May increase in nonpetroleum import prices was led by a continued rise in the price index for nonpetroleum industrial supplies and materials, which increased 1.8 percent for the month and 8.2 percent for the year ended in May. Higher metals prices led the advance as copper prices rose 15.4 percent for the second consecutive month. Foods, feeds, and beverages prices and automotive vehicle prices also contributed to the increase in nonpetroleum import prices, rising 0.9 percent and 0.2 percent, respectively. For the year ended in May, prices for foods, feeds, and beverages increased 7.9 percent and prices for automotive vehicles advanced 0.9 percent.

The price indexes for capital goods and for consumer goods were unchanged in May. Over the past 12 months, prices for capital goods fell 0.1 percent while prices for consumer goods rose 1.6 percent.

Export Goods

Export prices overall ticked up 0.1 percent in May following increases of 0.3 percent and 0.7 percent in April and March, respectively. Nonagricultural export prices led the increase, rising 0.2 percent in May. The rise followed advances of 0.5 percent in April and March, and continued an upward trend over the past year and a half. Nonagricultural prices increased 3.4 percent for the year ended in May, while overall export prices advanced 4.3 percent for the same period.

The increase in nonagricultural prices was driven by a rise in the price index for nonagricultural industrial supplies and materials, up 0.3 percent in May after advancing 1.3 percent and 1.8 percent in the previous two months. Higher prices for chemicals and iron and steel products contributed to the increase. Prices for nonagricultural industrial supplies and materials rose 8.1 percent over the past year.

The price indexes for capital goods and consumer goods also increased in May, rising 0.1 percent and 0.3 percent, respectively. Capital goods prices advanced 0.8 percent over the past 12 months, while prices for consumer goods rose 2.4 percent. Automotive vehicle prices were unchanged for the month and increased 1.2 percent for the year ended in May.

The price index for agricultural exports was unchanged following a 1.4 percent drop in April. The recent downturn followed a 14.1 percent increase for the index between September and March that was led by a sharp increase in corn prices. Corn prices resumed an upward trend in May after a downturn in April, rising 6.7 percent for the month, but that was offset by lower prices for vegetables, soybeans, fruit, and fish. Prices for agricultural exports rose 18.2 percent over the past year.

Imports by Locality of Origin

The price index for imports from China rose 0.3 percent in May, the largest monthly increase since the index was first published in January 2004. Over the past year, import prices from China ticked up 0.1 percent, the first time the index increased over a 12-month period. Prices for imports from Japan recorded no change in May and fell 0.5 percent over the past 12 months.

Higher petroleum prices in May contributed to increasing prices for imports from Canada, Mexico, and the European Union, which rose 1.2 percent, 0.5 percent, and 0.7 percent, respectively. For the year ended in May, import prices from Canada rose 1.7 percent, while prices for imports from Mexico and the European Union increased 3.2 percent and 2.5 percent, respectively.

Import and Export Services

Export post-secondary education prices increased 4.9 percent from the 2005/06 academic year to the 2006/07 academic year, following a similar 5.1 percent advance the previous academic year. Beginning with this release, annual price indexes will be published for export post-secondary education.

Export travel and tourism prices, which are lagged one month, rose 0.2 percent in April after a 2.2 percent increase in March.

Import air passenger fares rose 0.2 percent in May, following a 3.5 percent increase in April. Export air passenger fares also increased in May, rising 3.9 percent. The index for import fares rose 3.9 percent for the year ended in May, while export fares increased 7.5 percent for the same period.

Prices for import air freight rose 1.1 percent in May, driven by a 3.3 percent advance in European air freight prices. Import air freight prices increased 1.4 percent over the past year. Export air freight prices advanced 0.3 percent in May and 2.5 percent over the past 12 months.