April 2008 U.S. Import and Export Price Indexes

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- APRIL 2008 -

The U.S. Import Price Index increased 1.8 percent in April, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. For the second consecutive month, higher prices for both petroleum and nonpetroleum imports contributed to the advance. The rise followed a 2.9 percent increase in March. Export prices also increased in April, rising 0.3 percent after advancing at least 1.0 percent in each of the previous three months.

Import Goods

The 1.8 percent rise in April followed increases of 2.9 percent, 0.2 percent, and 1.5 percent in March, February, and January, respectively. Petroleum prices advanced 4.4 percent in April after a 9.2 percent rise in March. Prices for petroleum rose 57.2 percent for the year ended in April following a 1.1 percent drop over the previous 12-month period. Nonpetroleum prices increased 1.1 percent for the second consecutive month, matching 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 advanced 15.4 percent and 6.2 percent, respectively, during the past year.

The largest contributor to the April increase in nonpetroleum prices was a 3.3 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. Over the past 12 months, nonpetroleum industrial supplies and materials prices rose 17.0 percent.

Prices for capital goods, automotive vehicles, and consumer goods were all up in April as well. Capital goods prices increased 0.8 percent, the largest increase for the index since an equivalent rise in May 1995. Prices for capital goods advanced 2.1 percent over the past 12 months. The price index for automotive vehicles rose 0.4 percent in April after advancing 0.2 percent in each of the previous two months. Over the past year, the index went up 3.3 percent, the largest rise since an identical increase in August 1995. Consumer goods prices advanced 0.2 percent in April after rising 0.4 percent in each of the previous two months. Prices for consumer goods rose 2.8 percent for the year ended in April, the largest increase since a 3.9 percent advance in November 1992.

Prices for foods, feeds, and beverages rose 0.4 percent in April, following a 2.8 percent rise in March, as rising fruit prices more than offset falling prices for coffee.

Export Goods

Export prices advanced a comparatively modest 0.3 percent in April following a 1.5 percent jump in March, which was the largest one-month increase since the index was first published in September 1983. Prices of overall exports advanced 7.7 percent over the past year. In April, a 0.6 percent advance in nonagricultural prices more than offset a 2.2 percent downturn in agricultural prices. Prices for nonagricultural exports rose for the seventh consecutive month and advanced 5.6 percent for the year ended in April.

The increase in nonagricultural prices was led by the continued rise in the price index for nonagricultural industrial supplies and materials prices, which rose 1.3 percent in April after rising 3.8 percent in March. Higher prices for fuels, metals, and chemicals contributed to the increase.

Prices for each of the major finished goods indexes also rose in April. Capital goods prices advanced 0.3 percent after falling 0.1 percent in March. The price indexes for export automotive vehicles and consumer goods increased 0.4 percent and 0.2 percent, respectively.

Agricultural prices decreased 2.2 percent in April, the first decrease in 11 months and the largest decline since an 8.4 percent drop in August 2004. Soybean and wheat prices led the downturn in agricultural prices, falling 13.7 percent and 17.8 percent, respectively. Despite the decline, agricultural prices rose 32.3 percent over the past year.

Imports by Locality of Origin

The price indexes for imports from Canada, the European Union, and Mexico increased in April, led by higher fuel prices. Prices for imports from Canada rose 2.6 percent for the month and 18.1 percent for the year ended in April. Import prices from the European Union advanced 1.3 percent in April and 8.3 percent over the past year. The price index for imports from Mexico increased 2.2 percent following a 2.9 percent rise in March. Prices of imports from Mexico advanced 18.3 percent over the past 12 months.

Import prices from China also increased in April, rising 0.2 percent after a 0.6 percent gain the previous month. Prices for imports from China rose 4.1 percent for the April 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 edged up 0.2 percent in April and advanced 1.0 percent over the past year.

Import and Export Services

Import air passenger fares rose 9.1 percent in April after advancing 0.2 percent in March. A 17.3 percent increase in fares from Europe was the largest contributor to the overall increase, although prices also rose for Latin America-Caribbean and Asian fares. The price index for overall fares increased 12.6 percent for the year ended in April. In contrast, export air passenger fares decreased 5.0 percent in April following a 2.4 percent increase in March. The April decline was led by lower Asian fares. Over the past year, the index rose 3.3 percent.

The price index for import air freight advanced 4.5 percent in April, driven by a 9.6 percent increase in European air freight prices. Import air freight prices increased 15.1 percent for the year ended in April. Export air freight prices rose 2.4 percent in April after falling 0.2 percent the previous month. The index advanced 14.7 percent over the past year.