November 2010 U.S. Import and Export Price Indexes

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U.S. import prices increased 1.3 percent in November, the U.S. Bureau of Labor Statistics reported today, following a 1.0 percent advance the previous month. Rising prices for fuel and nonfuel imports contributed to both the November and October increases. Prices for U.S. exports also rose in November, increasing 1.5 percent after advancing 0.8 percent in October.

Imports

All Imports: Import prices advanced 1.3 percent in November following a 1.0 percent increase in October. The November rise was the largest monthly advance since a 1.5 percent increase in November 2009 and marked the first time since May and June 2009 that import prices rose by at least 1.0 percent in consecutive months. The price index for overall imports increased 3.7 percent over the past 12 months, similar to the year-over-year increases recorded in each of the three previous months.

Fuel Imports: Fuel prices rose 3.7 percent in November after advancing 3.8 percent the previous month. The November increase was driven by a 4.1 percent rise in petroleum prices, which more than offset a 3.8 percent drop in natural gas prices. The price index for fuels advanced 6.3 percent for the year ended in November, led by a 7.4 percent increase in petroleum prices. In contrast, prices for natural gas declined 15.2 percent over the past year.

All Imports Excluding Fuel: Prices for nonfuel imports rose 0.8 percent following 0.3 percent advances in each of the three previous months. The November increase was the largest one-month advance for the index since a 1.1 percent rise in April 2008. Higher prices for nonfuel industrial supplies and materials were the largest factor for the overall increase in nonfuel prices; however, increasing finished goods and food prices also contributed to the November advance. Nonfuel import prices increased 3.0 percent for the November 2009-2010 period.

Exports

All Exports: Export prices increased 1.5 percent in November, the largest monthly advance for the index since a 1.5 percent rise in July 2008. The November increase in export prices followed advances of 0.8 percent in October, 0.6 percent in September, and 0.8 percent in August. Prices for both agricultural and nonagricultural exports continued to move higher. The price index for overall exports rose 6.5 percent over the past year, the largest 12-month advance since a 7.0 percent increase between September 2007 and September 2008.

Agricultural Exports: Prices for agricultural exports rose 8.0 percent in November, the largest one-month jump in the index since publication began on a monthly basis in December 1988. Higher prices for corn, cotton, soybeans, and wheat all contributed towards the increase in agricultural prices in November. Agricultural prices advanced 21.0 percent for the year ended in November, the largest 12-month rise since the index increased 25.0 percent for the August 2007-2008 period. Over the past 12 months, cotton prices rose 81.4 percent, corn prices 43.7 percent, wheat prices 40.1 percent, and soybeans prices 19.3 percent.

All Exports Excluding Agriculture: The price index for nonagricultural exports advanced 0.8 percent, the largest monthly increase since a 1.3 percent rise in April. Prices for both nonagricultural industrial materials and finished goods contributed to the November increase. Nonagricultural prices rose 5.1 percent over the past 12 months.

SELECTED NOVEMBER HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices rose 2.6 percent in November after increasing 1.8 percent the previous month. The advances for both months were driven by increases in unfinished metals prices, up 4.8 percent in November and 3.1 percent in October. Higher prices for gold, other precious metals, copper, and aluminum were all contributing factors. The November rise in nonfuel industrial supplies and materials prices was also impacted by a 2.4 percent advance in chemicals prices.

Finished Goods: Finished goods prices were mostly up in November. The price indexes for automotive vehicles and consumer goods rose 0.5 percent and 0.3 percent, respectively, while capital goods prices were unchanged. Capital goods prices excluding computers advanced 0.3 percent, but a 0.9 percent drop in computer prices offset the increase.

Foods, Feeds, and Beverages: Prices for import foods, feeds, and beverages rose 2.4 percent in November, led by an 11.2 percent increase in coffee prices and a 6.0 percent advance in prices for bakery and confectionary products. The increase in coffee prices resumed an upward trend following a 1.8 percent drop in October. Import coffee prices rose 40.7 percent over the past year.

Imports by Locality of Origin: Import prices from China increased 0.2 percent in November after rising 0.4 percent the previous month. The October advance was the largest monthly jump for the index since a 0.8 percent rise in July 2008. The price index for imports from China rose 0.7 percent over the past year. Prices of imports from Canada, Mexico, and the European Union also advanced in November, rising 1.4 percent, 0.9 percent, and 0.8 percent, respectively. In contrast, the price index for imports from Japan fell 0.1 percent in November after increasing 0.4 percent the previous month.

Transportation Services: Import air passenger fares decreased 1.3 percent in November, driven by a 3.2 percent drop in European fares. Despite the decline, overall import air passenger fares rose 12.8 percent over the past year. Import air freight prices advanced 3.5 percent in November and 11.8 percent over the past 12 months.

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices rose 1.8 percent following a 1.5 percent advance in October. Higher prices for metals, fuels, and chemicals led the increases for each month.

Finished Goods: Prices for each of the major finished goods categories increased in November. Capital goods prices rose 0.3 percent. A 0.7 percent rise in computer prices as well as a 0.2 percent advance in capital goods prices excluding computers contributed to the overall increase. Prices for consumer goods and automotive vehicles also rose in November, increasing 0.4 percent and 0.2 percent, respectively.

Transportation Services: Export air passenger fares declined 3.6 percent in November, led by a 13.5 percent drop in European fares. Overall export air passenger fares increased 16.7 percent for the year ended in November. In contrast, export air freight prices advanced 0.7 percent in November and 4.4 percent over the past year.

Import and Export Price Index data for December 2010 are scheduled for release on Wednesday, January 12, 2011 at 8:30 a.m. (EST).