March 2008 U.S. Import and Export Price Indexes

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- MARCH 2008 -

The U.S. Import Price Index increased 2.8 percent in March, the Bureau of Labor Statistics of the U.S. Department of Labor reported today, as higher prices for both petroleum and nonpetroleum imports contributed to the advance. The rise followed 0.2 percent and 1.5 percent increases in February and January. Export prices rose 1.5 percent in March, after advancing 1.1 percent and 1.2 percent for the prior two months.

Import Goods

The price index for overall imports rose 2.8 percent in March, led by a 9.1 percent advance in petroleum prices. Petroleum prices resumed an upward trend following a 1.9 percent downturn in February. Prices for petroleum rose 60.0 percent for the year ended in March following a comparatively modest 3.1 percent rise over the previous 12-month period. A 1.1 percent increase in nonpetroleum prices also contributed to the overall rise and was the largest one-month increase for the index since nonpetroleum prices were first published on a monthly basis in December 1988. The price indexes for overall imports and nonpetroleum imports also advanced for the March 2007-08 period, increasing 14.8 percent and 5.4 percent, respectively.

The largest contributor to the March increase in nonpetroleum prices was a 3.6 percent advance in the price index for nonpetroleum industrial supplies and materials. That rise was mostly driven by a jump in unfinished metals prices, although higher prices for natural gas, finished metals, and chemicals also factored into the advance. Nonpetroleum industrial supplies and materials prices rose 14.7 percent over the past 12 months.

Prices for consumer goods; foods, feeds, and beverages; and automotive vehicles were all up in March as well. Consumer goods prices increased 0.5 percent following 0.4 percent and 0.5 percent increases in February and January. Foods, feeds, and beverages prices rose 2.5 percent, led by higher prices for food oils, fish, and coffee. The price index for automotive vehicles advanced 0.2 percent in March after ticking up 0.1 percent the previous month.

Capital goods prices were unchanged in March as declining computer prices offset price increases for the remainder of capital goods.

Export Goods

Export prices advanced 1.5 percent in March, the largest one-month increase for the index since overall export prices were first published monthly in December 1988. The index advanced 7.9 percent over the past year, the largest 12-month advance since an 8.7 percent increase for the September 1987-88 period. Both the monthly and annual increases were driven by higher agricultural prices, up 4.1 percent in March and 33.4 percent over the past 12 months. Soybeans and corn prices were the largest contributors to the March increase, rising 9.6 percent and 7.9 percent, respectively. In contrast, the increase over the past year was led by a 145.2 percent jump in wheat prices. Nonagricultural prices advanced 1.2 percent in March which was also the largest monthly rise since October 1990. The index increased 5.6 percent over the past year.

Nonagricultural industrial supplies and materials prices rose 3.7 percent in March, as prices for fuels, metals, and chemicals all recorded increases. The price indexes for export consumer goods and automotive vehicles also advanced in March, each rising 0.2 percent for the month. Both followed similar increases in February when consumer goods prices rose 0.2 percent and prices for automotive vehicles advanced 0.1 percent.

Prices for capital goods were unchanged in March after rising 1.0 percent over the previous three months. Capital goods prices excluding computers advanced 0.2 percent in March, but a 1.0 percent drop in computer prices offset those gains.

Imports by Locality of Origin

The price indexes for imports from Canada, the European Union, and Mexico all increased in March, led by higher fuel prices. Prices for imports from Canada rose 3.2 percent for the month and 16.4 percent for the year ended in March. Import prices from the European Union advanced 1.6 percent in March and were up 6.9 percent over the past year. The price index for imports from Mexico resumed an upward trend in March, increasing 2.2 percent following a 1.8 percent downturn in February. The index advanced 17.2 percent over the past 12 months.

Import prices from China also increased in March, rising 0.7 percent after a 0.1 percent gain the previous month. The index had been up 0.9 percent in January. Prices for imports from China rose 4.0 percent for the March 2007-08 period, the largest 12-month increase recorded since the index was first published in December 2003.

The price index for imports from Japan ticked up 0.1 percent in March and advanced 0.7 percent over the past year.

Import and Export Services

Import air passenger fares rose 0.2 percent in March after declining in each of the prior two months. A 1.2 percent increase in fares from the Latin America-Caribbean region was the largest contributor to the overall increase, although prices also rose for European and Asian fares. The price index for overall fares increased 6.8 percent for the year ended in March. Export air passenger fares advanced 5.0 percent in March following a 5.6 percent decrease in February. The index rose 14.4 percent over the past year. Both the March and the annual increases were led by higher Asian fares.

The price index for import air freight advanced 1.1 percent in March, driven by a 1.7 percent increase in Asian air freight prices. Import air freight prices increased 10.3 percent for the year ended in March. Export air freight prices rose 0.3 percent in March after falling 0.3 percent the previous month. The index advanced 12.8 percent over the past year.