January 2010 U.S. Import and Export Price Indexes

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The U.S. Import Price Index advanced 1.4 percent in January, the U.S. Bureau of Labor Statistics reported today, as fuel and nonfuel prices each increased. The rise in overall imports followed a 0.2 percent uptick in December. Export prices rose 0.8 percent in January after advancing 0.6 percent in December and 0.8 percent in November.

Imports

All Imports: Import prices continued to increase in January, rising 1.4 percent after a 0.2 percent advance in December. Approximately three quarters of the increase was attributable to higher fuel prices. Import prices rose for the sixth consecutive month and 11.5 percent for the year ended in January, the largest 12-month gain for the index since a 13.1 percent jump for the September 2007-08 period.

Fuel Imports: Import fuel prices resumed an upward trend in January, rising 5.3 percent following a 0.6 percent drop in December. A 4.8 percent increase in petroleum prices and an 18.8 percent advance in natural gas prices both contributed to the January increase. Despite increasing in each of the past four months, natural gas prices fell 2.9 percent for the year ended in January. The price index for petroleum jumped 95.5 percent over the past year, driving overall fuel prices up 78.6 percent for the same period. The 12-month increase in fuel prices followed a 51.4 percent drop for the January 2008-09 period.

All Imports Excluding Fuel: Prices for nonfuel imports rose 0.4 percent for the fifth time in the past six months. The increase was led by higher prices for nonfuel industrial supplies and materials. Rising prices for foods, feeds, and beverages and consumer goods also factored into the overall advance. Nonfuel import prices increased 1.3 percent over the past year as the index has risen nine of the past ten months.

Exports

All Exports: Export prices rose 0.8 percent in January following 0.6 percent and 0.8 percent increases the previous two months. The 2.3 percent increase for the November-January period was the largest three-month advance in export prices since a 2.9 percent rise for the three months ended in July 2008. The January increase was driven by higher nonagricultural prices which accounted for approximately eighty percent of the overall advance. The price index for overall exports rose 3.4 percent over the past 12 months, the largest year-over-year increase since a 4.0 percent advance for the year ended October 2008.

Agricultural Exports: The price index for agricultural exports increased 1.4 percent in January and 4.5 percent over the past year. The increase in January followed a 1.7 percent advance in December and was driven by rising nut prices. A 5.7 percent rise in soybean prices for the January 2009-10 period led the 12- month increase in agricultural prices.

All Exports Excluding Agriculture: Nonagricultural prices advanced 0.7 percent in January, the largest monthly increase since a similar 0.7 percent rise in August 2009. Increasing prices for nonagricultural industrial supplies and materials, capital goods, and automotive vehicles all contributed to the overall advance in January. The price index for nonagricultural export prices has risen each month since April and increased 3.3 percent for the year ended in January.

SELECTED JANUARY HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials increased 1.5 percent in January after rising 1.8 percent in December. Rising prices for metals and chemicals led the advances in each month.

Finished Goods: Import finished goods prices were virtually unchanged in January, with a 0.2 percent increase in consumer goods prices offsetting 0.1 percent declines in the price indexes for capital goods and automotive vehicles. The increase in consumer goods prices was led by higher prices for medicinal, dental and pharmaceutical products. The January decreases for capital goods and automotive vehicles followed drops of 0.2 percent and 0.1 percent, respectively, in December.

Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages rose 1.3 percent in January, the largest monthly advance since a 1.3 percent rise in August 2009. Rising prices for fruits and vegetables were the primary contributors to the January increase.

Imports by Locality of Origin: Higher fuel prices contributed to January increases in import prices from Canada, Mexico, and the European Union. Import prices from Canada rose 3.6 percent, the largest one- month increase since a 3.6 percent rise in June 2008. The price indexes for imports from Mexico and the European Union rose 1.7 percent and 0.2 percent, respectively, in January. In contrast, import prices from China fell 0.3 percent, the largest monthly drop since a 0.5 percent decline in April 2009. The January decline followed a 0.2 percent increase in December.

Transportation Services: Import air passenger fares fell 3.2 percent in January after increasing in each of the three previous months. Lower European, Asian, and Latin American/Caribbean fares all contributed to the decline. The price index for import air freight also decreased in January, falling 7.6 percent. The decline was led by a 10.1 percent decrease in Asian air freight prices.

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices increased 1.9 percent for the second consecutive month in January. Both advances were driven by higher prices for metals, chemicals, and paper.

Finished Goods: Prices for the major finished goods categories were mixed in January following an overall decline in December. The price indexes for capital goods and automotive vehicles each rose 0.2 percent, while prices for consumer goods fell 0.3 percent.

Transportation Services: Export air passenger fares advanced 4.2 percent in January following a 10.2 percent increase the previous month. For the second consecutive month, the rise was led by higher Asian and Latin American fares. The price index for export air freight rose 0.4 percent in January after advancing 0.4 percent in November and 0.7 percent in December.

Import and Export Price Index data for February 2010 are scheduled for release on Tuesday, March 16, 2010 at 8:30 a.m. (EDT).