December 2009 U.S. Import and Export Price Indexes

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The U.S. Import Price Index was unchanged in December, the U.S. Bureau of Labor Statistics reported today, as a decline in fuel prices offset rising nonfuel prices. Import prices increased 8.6 percent in 2009. U.S. export prices advanced 0.6 percent in December and rose 3.4 percent in 2009.

Imports

All Imports: Import prices were unchanged in December following increases in each of the four previous months. Prices for U.S. imports trended up over most of 2009, rising 8.6 percent overall for the year. In 2009, prices rebounded from a 10.1 percent decline in 2008, the largest calendar-year drop since the index was first published in 1982. Fuel prices were the primary contributor to both the decline in overall import prices for 2008 and the subsequent increase in 2009.

Fuel Imports: Fuel prices fell 1.4 percent in December after advancing 2.9 percent in October and 7.1 percent in November. The decrease in December, the first since a 1.3 percent drop in September, was led by a 2.0 percent drop in petroleum prices which more than offset a 6.9 percent increase in natural gas prices. Despite the December drop, fuel prices jumped 61.4 percent in 2009 following a 47.0 percent decline the previous year. Petroleum prices rose 78.4 percent for the year ended in December while natural gas prices fell 28.4 percent.

All Imports Excluding Fuel: The price index for nonfuel import prices increased 0.4 percent for the fifth consecutive month in December. Higher prices for nonfuel industrial supplies and materials, food, capital goods, and automotive vehicles all contributed to the overall advance in December. Nonfuel prices, which fell 1.8 percent in the first quarter of 2009, also rose 0.4 percent over the past 12 months. The index advanced 1.2 percent in 2008.

Exports

All Exports: Export prices increased 0.6 percent in December after rising 0.9 percent the previous month. Rising prices for both agricultural exports and nonagricultural exports contributed to the increase. The price index for U.S. exports advanced 3.4 percent in 2009. The 2009 increase in export prices followed a 2.9 percent decline for 2008.

Agricultural Exports: Agricultural prices rose 2.0 percent in December following a 4.0 percent advance in November. Rising wheat prices led the December increase. Although the price trend for agricultural exports was mixed in 2009, the index increased 9.6 percent overall after falling 10.9 percent in 2008. The 2008 drop was the largest calendar-year decline in agricultural prices since the index began in 1985. Higher prices for soybeans and corn drove the increase in overall export prices in 2009.

All Exports Excluding Agriculture: The price index for nonagricultural exports advanced 0.5 percent in December after rising 0.6 percent in November. The December increase was driven by higher prices for nonagricultural industrial supplies and materials. Prices for nonagricultural exports increased 2.9 percent over the past year following a 2.2 percent decline in 2008.

SELECTED DECEMBER HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices rose 1.9 percent in December, primarily driven up by a 3.9 percent advance in the price index for unfinished metals. A 19.4 percent increase in unfinished metals prices in 2009 was also the main contributor to a 2.4 percent increase for the price index of nonfuel industrial supplies and materials for the year.

Finished Goods: Prices for import finished goods ticked up in December, as the price indexes for capital goods and automotive vehicles advanced 0.1 percent and consumer goods prices were unchanged. For the year ended in December, prices for capital goods and consumer goods fell 0.5 percent and 0.2 percent, respectively, while prices for automotive vehicles advanced 1.2 percent.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices rose 0.9 percent in December and 1.0 percent in 2009. Rising coffee prices led both the December and 2009 advances while a drop in fruit and vegetable prices over the past year tempered the overall increase in foods, feeds, and beverages in 2009.

Imports by Locality of Origin: Import prices from Japan and China both increased in December, rising 0.3 percent and 0.1 percent, respectively. In 2009, prices for imports from Japan advanced 1.9 percent, while the price index for imports from China declined 1.9 percent. Led in part by higher petroleum prices over the past year, imports from Canada, Mexico, and the European Union all rose in 2009, increasing 6.0 percent, 4.5 percent, and 2.2 percent, respectively.

Transportation Services: Import air passenger fares advanced 3.3 percent for the month. Despite the increase, the index fell 3.2 percent over the past 12 months. The price index for import air freight rose 7.5 percent in December and 18.3 percent in 2009. Both advances were driven by higher Asian air freight prices, up 10.1 percent in December and 24.2 percent over the past year.

Export Prices

Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies and materials increased 1.9 percent in December and 6.9 percent over the past 12 months. The December advance was led by higher prices for metals, fuels and chemicals.

Finished Goods: Prices for each of the major finished goods categories were unchanged in December. In 2009, capital goods prices rose 1.9 percent. Contributing to the increase was a 0.8 percent rise in computers, peripherals, and semi-conductors prices, the first calendar year advance for the index since a 0.1 percent rise in 1988 and the largest calendar year increase since the index advanced 6.1 percent in 1981. The price indexes for consumer goods and automotive vehicles also rose in 2009, increasing 0.4 percent and 0.2 percent, respectively.

Transportation Services: Export air passenger fares rose 7.3 percent in December, but remained down 7.7 percent in 2009. The price index for export air freight advanced 0.9 percent in December after rising 0.6 percent the previous month. Despite the recent increases, the index fell 8.8 percent over the past 12 months.

Import and Export Price Index data for January 2010 are scheduled for release on Wednesday, February 17, 2010 at 8:30 a.m. (EST).