December 2010 U.S. Import and Export Price Indexes

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U.S. import prices rose 1.1 percent in December, the U.S. Bureau of Labor Statistics reported today, after increasing 1.5 percent in November and 1.1 percent in October. Import prices advanced 4.8 percent in 2010. The price index for U.S. exports increased 0.7 percent in December and 6.5 percent over the past year.

Imports

All Imports: Import prices rose 1.1 percent in December, and higher prices for both fuel and nonfuel prices contributed to the overall advance. The price index for overall imports rose 3.7 percent in the fourth quarter of 2010, the largest three-month increase since import prices advanced a similar 3.7 percent between May and August 2009. Import prices rose for the second consecutive year in 2010, increasing 4.8 percent after an 8.6 percent advance in 2009.

Fuel Imports: Fuel prices increased 4.1 percent following similar advances of 4.2 percent and 4.3 percent the two previous months. The price indexes for petroleum and natural gas contributed to the December increase, rising 3.9 percent and 14.4 percent, respectively. Prices for imported fuel rose 11.9 percent in 2010 after a 62.2 percent jump in 2009. The increase in 2010 was led by a 13.7 percent advance in petroleum prices, which more than offset an 11.3 percent drop in prices for natural gas.

All Imports Excluding Fuel: The price index for nonfuel prices advanced 0.3 percent in December after a 0.8 percent rise the previous month. Rising prices for nonfuel industrial supplies and materials and foods, feeds, and beverages led the advance in December. Nonfuel prices rose 3.0 percent in 2010, primarily driven by a 12.0 percent increase in the price index for nonfuel industrial supplies and materials. The 2010 increase in nonfuel prices was the largest calendar-year increase for the index since a 3.1 percent advance in 2007.

Exports

All Exports: Prices of overall exports rose 0.7 percent in December following a 1.5 percent increase the previous month. Higher prices for both agricultural and nonagricultural exports contributed to the advances in each of the past two months. Export prices increased 6.5 percent in 2010 after a 3.4 percent rise the previous year. The 2010 advance was the largest calendar-year increase since the index was first published in December 1983.

Agricultural Exports: Agricultural prices rose 1.7 percent led by a 10.5 percent increase in cotton prices and a 5.0 percent advance in soybeans prices. The December increase followed a 7.6 percent jump in November. Prices for agricultural exports rose 20.2 percent in 2010, the largest calendar-year increase since a 23.3 percent advance in 2007. While a 107.0 percent increase in cotton prices was the largest single factor for the rise in agricultural prices in 2010, higher prices for corn, wheat, soybeans, and meat also contributed to the advance.

All Exports Excluding Agriculture: The price index for nonagricultural exports rose 0.6 percent in December after increasing 0.8 percent and 0.6 percent, respectively, in November and October. Nonagricultural prices advanced 5.1 percent in 2010, the largest calendar-year increase for the index since December 1987. The 2010 increase was driven by a 13.5 percent advance in nonagricultural industrial supplies and materials prices.

SELECTED DECEMBER HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials advanced 0.9 percent in December, led up by a 1.6 percent increase in chemicals prices and a 1.0 percent advance in unfinished metals prices. The price index for nonfuel industrial supplies and materials rose 12.0 percent in 2010. Prices for unfinished metals and chemicals, up 19.7 percent and 12.0 percent, respectively, were also the largest contributors to the increase over the past year.

Finished Goods: Finished goods prices were mostly flat in December. Capital goods prices ticked up 0.1 percent, while the price indexes for consumer goods and automotive vehicles were unchanged. Each of the major finished goods categories also recorded little price movement over the past 12 months. Prices for automotive vehicles and capital goods rose 1.1 percent and 0.2 percent, respectively, in 2010, while in contrast, consumer goods prices fell 0.3 percent.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices rose 1.3 percent in December and 13.1 percent over the past 12 months. Higher prices for vegetables, fish, food oils, and meat led the increase in December.

Imports by Locality of Origin: Prices of imports from China and from Japan each rose 0.3 percent in December. Driven by a 0.9 percent increase in the fourth quarter, import prices from China advanced 0.8 percent over the past year after declining 1.8 percent in 2009. Import prices from Japan rose 2.0 percent in 2010, similar to the 1.9 percent advances recorded in each of the previous two years.

Transportation Services: Import air passenger fares rose 2.1 percent in December and 11.6 percent in 2010. The 2010 increase followed a 3.2 percent decline in 2009. The December increase was led by a 9.8 percent increase in Asian fares and a 9.2 percent advance in Latin American and Caribbean fares, which more than offset a 5.8 percent decline in European fares. Higher prices for all three regions contributed to the 2010 advance in overall air passenger fares. The price index for import air freight declined 0.3 percent in December. Despite the December decrease, the index rose 3.2 percent in 2010.

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials advanced 1.4 percent in December led by rising fuel and metals prices. Higher prices for fuels, metals, and chemicals drove overall nonagricultural industrial supplies and materials prices up 13.5 percent in 2010.

Finished Goods: Finished goods prices were mostly up in December. Consumer goods prices rose 0.2 percent, capital goods prices ticked up 0.1 percent, while prices for automotive vehicles were unchanged. Prices for each of the major finished goods categories increased in 2010. Consumer goods prices increased 3.4 percent, prices for capital goods rose 0.6 percent, and automotive vehicles prices advanced 0.8 percent.

Transportation Services: Export air passenger fares advanced 2.3 percent in December and 6.8 percent in 2010. The increase over the past 12 months was driven by a 22.9 percent increase in Asian fares and followed a 5.2 percent drop in 2009. Export air freight prices rose 0.6 percent in December and 4.1 percent over the past year.

Import and Export Price Index data for January 2011 are scheduled for release on Tuesday, February 15, 2011 at 8:30 a.m. (EST).