January 2008 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.

- JANUARY 2008 -

The U.S. Import Price Index increased 1.7 percent in January, the Bureau of Labor Statistics of the U.S. Department of Labor reported today, led by a 5.5 percent increase in petroleum prices. The overall increase followed a 0.2 percent decline in December. U.S. export prices advanced 1.2 percent in January following a 0.4 percent rise in December.

- Due to budget constraints, beginning with the January 2008 release, the price series for export postsecondary education services, export travel and tourism services, inbound ocean liner freight, and inbound tanker freight will no longer be published.

Import Goods

The January increase in overall imports resumed the upward trend of the past year after a 0.2 percent decrease in December. The index, which had risen 3.1 percent in November and 1.5 percent in October, is up 13.7 percent over the past 12 months, the largest year-over-year increase since the index was first published in September 1982. The 5.5 percent increase in petroleum prices was the largest contributor to the January increase, although nonpetroleum prices also advanced, rising 0.6 percent. Petroleum prices also led the overall increase in import prices over the past year, rising 66.9 percent over that period. The increase in nonpetroleum prices in January followed increases of 0.3 percent in December and 0.6 percent in November. Over the past 12 months, prices for nonpetroleum imports rose 3.6 percent.

The January increase in nonpetroleum prices was primarily driven by a 2.2 percent rise in the price index for nonpetroleum industrial supplies and materials. That increase followed advances of 0.7 percent in December and 2.3 percent in November and was led by higher prices for chemicals and natural gas.

The price indexes for foods, feeds, and beverages and consumer goods also increased in January. Prices for foods, feeds, and beverages rose 3.1 percent in January and 10.9 percent for the year ended in January. Consumer goods prices advanced 0.3 percent for the month and 1.6 percent over the past year.

In contrast, capital goods prices fell 0.2 percent in January as a decline in computer prices more than offset a 0.2 percent increase in prices for capital goods excluding computers. Prices for automotive vehicles were unchanged for the month.

Export Goods

The 1.2 percent increase in export prices was the largest one-month gain in the index since a 1.2 percent increase in January 1989. Higher prices for both agricultural exports and nonagricultural exports contributed to the advance. Agricultural prices rose 5.0 percent in January after a 2.8 percent increase in December. Higher prices for corn and soybeans drove the increase in agricultural prices. Over the past 12 months, the price index for agricultural exports rose 28.9 percent.

Nonagricultural prices also increased in January, rising 0.8 percent following a 0.3 percent advance in December. The index rose 4.8 percent over the past year. A 2.2 percent increase in the price index for nonagricultural industrial supplies and materials was the main contributor to the January advance. Higher prices for chemicals and steelmaking materials led the advance. For the year ended in January, nonagricultural industrial supplies and materials prices rose 12.0 percent.

Prices for capital goods and automotive vehicles also increased in January, advancing 0.2 percent and 0.1 percent, respectively. For the January 2007-2008 period, capital goods prices rose 1.5 percent while the price index for automotive vehicles increased 1.0 percent.

In contrast, the price index for export consumer goods prices edged down 0.1 percent for the month.

Imports by Locality of Origin

Prices for imports from China rose for the ninth consecutive month in January, increasing 0.8 percent, the largest monthly advance since the index was first published in December 2003. Import prices from China increased 3.3 percent over the past year after falling 0.9 percent from January 2005- 2006.

Price indexes for imports from the European Union and from Canada increased in January, rising 1.1 percent and 0.1 percent, respectively. Higher fuel prices contributed to the increases. For the year ended in January, import prices from the European Union rose 4.1 percent while import prices from Canada rose 11.3 percent.

Prices for imports from Mexico and from Japan also advanced in January, rising 2.8 percent and 0.1 percent, respectively. Rising petroleum prices led the advance in prices for imports from Mexico, which increased 19.9 percent over the past year. The price index for imports from Japan edged up 0.2 percent over the past 12 months, the first 12-month advance in the index since October 2005.

Import and Export Services

Import air passenger fares fell 2.1 percent in January after increasing 5.5 percent in December. The January decrease was led by an 11.2 percent drop in Asian fares. Over the past year, import air passenger fares increased 7.8 percent. Export air passenger fares increased in January, rising 7.9 percent. The index advanced 18.6 percent over the past year.

Prices for import air freight edged down 0.1 percent in January following a 3.0 percent advance the previous month. Lower air freight prices from Asia more than offset higher prices from Europe. Overall import air freight prices rose 7.6 percent for the year ended in January. The price index for export air freight rose 3.0 percent in January and 11.5 percent over the past 12 months.