June 2008 U.S. Import and Export Price Indexes

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- JUNE 2008 -

The U.S. Import Price Index rose 2.6 percent in June, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase followed a 2.6 percent advance in May and was led by a continuing rise in petroleum prices. The price index for exports increased 1.0 percent in June after rising 0.4 percent in May.

Import Goods

June import prices rose 2.6 percent and were up 11.7 percent between February and June. Import prices advanced 20.5 percent over the past year, which was the largest year-over-year rise since the index was first published in September 1982. Higher petroleum prices continued to be the major contributor to the advance in overall import prices, increasing 7.4 percent in June after rising 8.9 percent, 7.9 percent, and 10.1 percent respectively, in the prior three months. Petroleum prices rose 78.6 percent for the year ended in June, the largest 12-month advance since the index increased 82.5 percent between February 2002 and February 2003.

Nonpetroleum prices also increased in June, rising 0.9 percent after advancing 0.7 percent in May and 1.3 percent in April. The index was up 7.3 percent over the past year. A 3.4 percent advance in the price index for nonpetroleum industrial supplies and materials led the June increase in nonpetroleum prices. The June rise in nonpetroleum industrial supplies and materials prices followed a 1.9 percent advance in May; the index rose 20.1 percent over the previous 12 months compared to an 8.0 percent increase over the June 2006-2007 period. Higher prices for natural gas, iron and steel products, and steelmaking materials were the largest contributors to the June advance.

Increases in the price indexes for foods, feeds, and beverages; consumer goods; and automotive vehicles also contributed to the June rise in nonpetroleum prices. Foods, feeds, and beverage prices rose 1.9 percent, led by higher prices for meats and seafood. Prices for consumer goods advanced 0.2 percent and prices for automotive vehicles edged up 0.1 percent.

In contrast, the price index for capital goods ticked down 0.1 percent in June after rising 0.3 percent the previous month. Lower computer prices more than offset rising prices for capital goods excluding computers.

Export Goods

Export prices increased 1.0 percent in June and 8.6 percent over the past year, the largest 12- month increase since September 1988. The price indexes for agricultural exports and nonagricultural exports each contributed to the overall increase in June export prices, moving up 2.2 percent and 0.9 percent, respectively. The increase in agricultural prices followed a 0.2 percent rise in May and was driven by higher prices for soybeans, corn, meat, and fruit which more than offset declines in wheat and vegetable prices. Agricultural prices rose 33.0 percent over the June 2007-2008 period. Nonagricultural prices also increased over the past 12 months, rising 6.4 percent.

The June advance in nonagricultural prices was led by a rise in prices for nonagricultural industrial supplies and materials which increased 2.1 percent in June after advancing 0.9 percent in May. The index rose 15.6 percent over the past year. The June increase was primarily driven by rising fuel prices, although higher prices for inorganic chemicals and plastics also contributed to the advance.

Each of the major finished goods price indexes recorded increases in June. The price index for export capital goods rose 0.3 percent in June following a 0.1 percent advance the previous month. Prices for automotive vehicles and consumer goods prices each increased 0.1 percent in June after recording no change in May.

Imports by Locality of Origin

Prices of imports from China continued to trend upward in June, rising 0.6 percent for the month. Import prices from China increased 4.8 percent for the June 2007-2008 period, the largest 12-month increase for the index since first being published in December 2003. In comparison, the index rose 0.7 percent for the year ended in June 2007.

Rising petroleum prices in June led to higher prices for imports from Canada, the European Union, and Mexico. Each index also recorded the largest annual increase since first being published in December 1990 for Canada and the European Union, and December 2003 for Mexico. Import prices from Canada increased 3.4 percent in June and 25.6 percent over the past year. Prices of imports from the European Union rose 0.6 percent for the month and 9.6 percent for the year ended in June. The price index for imports from Mexico advanced 2.1 percent in June and 21.6 percent over the past 12 months.

The price index for imports from Japan rose 0.2 percent in June after recording no change the previous month.

Import and Export Services

Led by higher European and Asian fares, import air passenger fares increased 18.3 percent in June following a 1.3 percent rise in May. Overall import air passenger fares moved up 18.7 percent for the year ended in June. After rising 3.3 percent in May, export air passenger fares increased 6.2 percent in June, driven by rising European and Latin American-Caribbean fares. The index rose 14.7 percent over the past 12 months.

The price indexes for import air freight and export air freight each advanced in June, increasing 1.1 percent and 2.9 percent, respectively. Import air freight prices increased 17.5 percent over the past year; export air freight prices advanced 21.5 percent over the same period.