August 2009 U.S. Import and Export Price Indexes

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The U.S. Import Price Index increased 2.0 percent in August, the U.S. Bureau of Labor Statistics reported today, driven primarily by a 9.8 percent advance in fuel prices. Import prices fell 0.7 percent in July. Prices for U.S. exports rose 0.7 percent in August after falling 0.3 percent the previous month.

Imports

All Imports: Import prices increased for the fifth time in the past six months in August, rising 2.0 percent for the month. Despite the recent advances, the price index for overall imports fell 15.0 percent over the past year and the decline was led by a 21.0 percent decrease for the index between August 2008 and January 2009. Import prices subsequently rose 7.6 percent from January 2009 to August 2009.

Fuel Imports: Volatile fuel prices were the primary contributor to both the August increase and 12-month decrease in overall import prices. The price index for import fuel advanced 9.8 percent in August and declined 39.6 percent for the August 2008-2009 period, though prices rose 61.5 percent from January to August.

All Imports Excluding Fuel: Prices for imports excluding fuel increased 0.4 percent in August following a 0.2 percent decline the previous month. The August increase was the largest monthly advance since a 0.6 percent increase in July 2008 and was led by higher prices for industrial supplies and materials. Despite the increase in August, prices for imports excluding fuel remain down 5.1 percent over the past 12 months, similar to the 5.3 percent decrease recorded for the year ended in July, which was the largest 12-month drop since the index was first published in December 2001.

Exports

All Exports: The price index for overall exports increased 0.7 percent in August, led upward mostly by a 0.8 percent advance in nonagricultural export prices. The rise followed a 0.3 percent decline in July and resumed the upward trend recorded in April, May, and June. Export prices fell 6.1 percent for the 12 months ended in August despite the recent advances, driven by a 7.3 percent drop in the final quarter of 2008.

Agricultural Exports: Agricultural prices ticked up 0.2 percent in August after a 4.9 percent decline in July. Falling wheat prices were more than offset by higher prices for fruit and corn. Prices for export agricultural goods decreased 14.1 percent over the past year, a decline that was led by a drop in prices for corn, wheat, meat, and soybeans.

All Exports Excluding Agriculture: The price index for nonagricultural exports rose 0.8 percent in August, the largest one-month rise since the index increased 0.9 percent in July 2008. The advance was driven by a 2.3 percent rise in nonagricultural industrial supplies and materials prices. Prices for each of the major finished goods areas also contributed to the overall increase. August marked the fifth consecutive month the price index for nonagricultural prices advanced, but the index declined 5.3 percent for the August 2008-2009 period.

SELECTED AUGUST HIGHLIGHTS

Import Prices

Foods, Feeds, and Beverages: Import foods, feeds, and beverages prices rose 1.7 percent in August, the largest monthly increase since a 2.0 percent advance in December 2008. The August advance was led by a tunaround in green coffee prices which were down in July. Higher prices for meat, fruit, and vegetables also contributed to the increase in foods, feeds, and beverages prices in August.

Nonfuel Industrial Supplies and Materials: A 1.3 percent jump in nonfuel industrial supplies and materials prices was the largest contributor to higher nonfuel prices in August. The advance was driven by higher metals prices and was the biggest one-month increase since July 2008.

Finished Goods: Finished goods prices were mixed in August. Automotive vehicles prices rose 0.2 percent and capital goods prices ticked up 0.1 percent. In contrast, consumer goods prices edged down 0.2 percent led by lower prices for import televisions and video receivers.

Transportation Services: The indexes for both air freight prices and air passenger fares decreased in August. Air freight prices edged down 0.2 percent while air passenger fares decreased 2.2 percent.

Imports by Locality of Origin: Higher fuel prices impacted a couple of the major locality of origin indexes in August. The price indexes for imports from Canada and from Mexico each rose for the month, increasing 2.7 percent and 2.3 percent, respectively. Prices of imports from China and from Japan also rose in August, increasing 0.2 percent and 0.1 percent, respectively.

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials advanced 2.3 percent in August, driven by higher prices for fuel and metals. Prices for aluminum, copper, and precious metals all increased in August.

Finished Goods: Prices for each of the major finished goods areas advanced in August. Led by higher computer prices, capital goods prices ticked up 0.1 percent in August. Prices for automotive vehicles also rose a modest 0.1 percent while consumer goods prices increased 0.3 percent.

Transportation Services: In contrast to imports, the export price index for export air freight and export air passenger fares increased in August. Prices for export air freight rose 0.5 percent and export air passenger fares jumped 9.6 percent, led by a sharp rise in Asian fares.

________ Import and Export Price Index data for September 2009 are scheduled for release on Wednesday, October 14, 2009 at 8:30 a.m. (EDT).