September 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.

- SEPTEMBER 2008 -

The U.S. Import Price Index decreased 3.0 percent in September, the Bureau of Labor Statistics of the U.S. Department of Labor reported today, following a 2.6 percent decline in August. Falling petroleum prices led the overall decrease, although nonpetroleum prices also declined. Prices for overall exports decreased 1.0 percent for the month.

Import Goods

Import prices fell 3.0 percent in September, the largest one-month decline since April 2003. Despite the 5.5 percent drop over August and September, the largest two-month decline since the index was first published monthly in December 1988; import prices were still up 14.5 percent over the past year. The September decrease in import prices was led by a 9.0 percent decline in petroleum prices, the largest monthly drop since October 2006. The September decline in petroleum prices followed an 8.2 percent decrease in August; however, the index still rose 47.1 percent over the past 12 months. Nonpetroleum import prices also fell in September, declining 0.9 percent after a 0.5 percent drop in August. Prices for nonpetroleum imports rose 6.5 percent for the year ended in September.

The September decrease in nonpetroleum prices was driven by a 2.9 percent drop in the price index for nonpetroleum industrial supplies and materials. Falling prices for natural gas and metals drove the decline. A 1.7 percent decrease in the foods, feeds, and beverages index largely resulted from lower prices for food oils, meat, and fish.

Prices for each of the major finished goods categories also fell in September. The price indexes for capital goods, automotive vehicles, and consumer goods each decreased 0.1 percent. The decrease in capital goods prices was led by computer prices, which continued to trend down in September. The fall in computer prices more than offset a 0.2 percent advance in capital goods prices excluding computers. The downturn in prices for automotive vehicles was the first decrease since the index fell 0.2 percent in January 2006. Similarly, consumer goods prices decreased for the first time since April 2006.

Export Goods

Export prices decreased 1.0 percent in September following a 1.7 percent decline in August. The September decline was led by a 1.0 percent drop in nonagricultural prices, although agricultural prices also fell, decreasing 0.3 percent. Despite the 2.7 percent downturn over August and September, the largest two-month decline since the index was first published monthly in December 1988; export prices were still up 6.8 percent for the year ended in September. The decline in nonagricultural prices in September followed a 0.7 percent drop in August, and was the largest one-month drop since the index was first published monthly in December 1988. Nonagricultural prices rose 5.6 percent for the September 2007-2008 period.

The September decline in nonagricultural prices was led by a 2.7 percent drop in the price index for nonagricultural industrial supplies and materials. Lower prices for gold, precious metals, and fuel oil led the decline.

Prices for capital goods and consumer goods also decreased in September, falling 0.1 percent and 0.3 percent, respectively. Excluding a 0.8 percent decrease in computer prices, capital goods prices advanced 0.1 percent in September. In contrast, the price index for automotive vehicles ticked up 0.1 percent.

The modest decline in agricultural prices was led by lower prices for soybeans, fruit, and vegetables, which more than offset increasing corn and wheat prices. The September decrease in agricultural prices followed a 9.6 percent decline in August. The index advanced 19.5 percent over the past twelve months.

Imports by Locality of Origin

Lower fuel prices in September drove the declines in import prices from Canada, Mexico, and the European Union for the second consecutive month. Import prices from Canada fell 4.9 percent, the largest one-month drop since the index was first published monthly in September 1992. Prices for imports from Mexico declined 1.7 percent, and import prices from the European Union fell 1.3 percent. Despite the decreases over the past two months, prices for imports from Canada, Mexico, and the European Union rose 19.8 percent, 16.3 percent, and 7.8 percent, respectively, over the past year.

Prices for imports from Japan also declined in September, falling 0.6 percent, which was the first monthly downturn for the index since November 2007 and the largest one-month drop since January 2006. The index rose 1.1 percent over the past year.

In contrast, import prices from China continued to rise in September, ticking up 0.1 percent for the second consecutive month after rising 3.2 percent from February to July. Import prices from China increased 4.8 percent for the year ended in September.

Import and Export Services

Import air passenger fares decreased 6.9 percent in September after falling 3.0 percent in August. The September decline was led by a 10.1 percent seasonal decrease in European fares. The index for import air passenger fares increased 15.0 percent for the September 2007-2008 period. Export air passenger fares fell 8.7 percent in September. The decrease was driven by a 10.9 percent seasonal drop in European fares. Over the past 12 months, the index increased 13.1 percent.

The price index for import air freight decreased 3.4 percent in September, led by an 8.1 percent decline in European air freight prices. The September drop in overall import air freight prices followed a 0.2 percent decrease the previous month. Export air freight prices fell 1.4 percent in September after advancing 3.6 percent in August. Import air freight prices rose 16.8 percent over the past 12 months while export air freight prices advanced 22.0 percent over the same period.