June 2011 U.S. Import and Export Price Indexes

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U.S. import prices fell 0.5 percent in June, the U.S. Bureau of Labor Statistics reported today, the first monthly decline since June 2010. Declining fuel and nonfuel prices both contributed to the overall decrease. U.S. export prices ticked up 0.1 percent in June after rising 0.2 percent in May.

Imports

All Imports: Import prices decreased 0.5 percent in June following a 0.1 percent uptick the previous month. The June drop was the first monthly decline since the index fell 1.2 percent in June 2010. Prior to May, import prices rose at least one percent in each of the previous seven months. Import prices increased 13.6 percent for the year ended in June, the largest year-over-year advance since the index rose 18.1 percent between August 2007 and August 2008.

Fuel Imports: Fuel prices fell for the second consecutive month in June, decreasing 1.6 percent following a 0.8 percent drop in May. The decrease in fuel prices accounted for most of the June decline in overall import prices. Both petroleum and natural gas prices contributed to the June decrease in fuel prices, falling 1.6 percent and 1.4 percent, respectively. Despite the declines over the past two months, fuel prices rose 46.9 percent over the past year. That increase was primarily led by a 49.8 percent jump in petroleum prices.

All Imports Excluding Fuel: The price index for imports excluding fuel edged down 0.1 percent in June, the first monthly decline for the index since a 0.3 percent decrease in July 2010. The June decline was driven by a 0.4 percent decrease in nonfuel industrial supplies and materials prices and a 1.9 percent drop in foods, feeds, and beverages prices, which more than offset higher prices for automotive vehicles and consumer goods. Nonfuel import prices advanced 4.8 percent for the year ended in June.

Exports

All Exports: Export prices continued to rise in June, ticking up 0.1 percent after a 0.2 percent increase the previous month. The recent increases were the smallest since the index declined 0.2 percent in July 2010. The June advance was led by higher agricultural prices as nonagricultural prices remained unchanged for the month. The price index for overall exports advanced 9.9 percent for the June 2010-11 period, the largest 12- month increase in export prices since the index rose 10.2 percent between July 2007 and July 2008.

Agricultural Exports: Agricultural prices resumed an upward trend in June, rising 0.7 percent following a 2.0 percent downturn in May. Higher prices for corn, soybeans, and wheat, up 3.2 percent, 2.3 percent, and 4.4 percent, respectively, all contributed to the June increase. The price index for agricultural exports advanced 31.2 percent over the past year, an increase that was also driven by rising prices for corn, soybeans, and wheat, as well as an 80.6 percent advance in cotton prices.

All Exports Excluding Agriculture: The price index for nonagricultural goods was unchanged in June after rising 0.5 percent in May. In June, higher finished goods prices offset a 0.7 percent decline in nonagricultural industrial supplies and materials prices. Prices for nonagricultural exports rose 7.8 percent for the year ended in June, driven mostly by an 18.6 percent increase in the price index for nonagricultural industrial supplies and materials.

SELECTED JUNE HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 0.4 percent in June, the first time the index has recorded a monthly decline since a 1.1 percent decrease in July 2010. A 2.6 percent downturn in unfinished metals prices led the June decline. The price index for unfinished metals also last recorded a decrease in July 2010, and despite the June drop, rose 21.3 percent over the past 12 months.

Finished Goods: Finished goods prices increased overall in June. Automotive vehicles prices rose 0.3 percent, following advances of 0.5 percent, 0.4 percent, and 0.5 percent, respectively, the previous three months. Prices for consumer goods ticked up 0.1 percent, led by a second consecutive 0.7 percent rise in the price index for cotton apparel and household goods, which has risen 10.3 percent over the past year. Capital goods prices were unchanged in June.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices declined 1.9 percent in June following a 0.7 percent drop the previous month. Both decreases were primarily driven by falling vegetable prices, down 16.1 percent in June and 9.4 percent in May.

Imports by Locality of Origin: The price index for imports from China advanced 0.1 percent in June, the smallest monthly advance since the index was unchanged in September 2010. Import prices from China have risen 3.1 percent over the past year, the largest 12-month increase since November 2008. Prices for imports from the European Union also rose 0.1 percent in June. In contrast, import prices from Mexico and from Canada declined in June, decreasing 2.2 percent and 1.0 percent, respectively.

Transportation Services: Import air fare prices rose 6.8 percent in June after advancing 5.6 percent in May. Both increases were driven by seasonal increases in European and Asian air fares. The index for import air fares advanced 5.0 percent for the year ended in June. In contrast, import air freight prices edged down 0.1 percent in June.

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials decreased 0.7 percent in June, the first decline since a similar 0.7 percent drop in July 2010. A 2.1 percent downturn in fuels and lubricants prices was the primary contributor to the overall decrease. Despite the June decline, the price index for fuels and lubricants increased 35.5 percent over the past 12 months.

Finished Goods: Each of the major finished goods categories recorded increases in June. Consumer goods prices advanced 1.4 percent, the largest monthly increase since a 1.7 percent rise in April 1991. The price indexes for capital goods and automotive vehicles also advanced in June, rising 0.2 percent and 0.1 percent, respectively.

Transportation Services: The index for export air passenger fares advanced 1.1 percent in June, following a 3.6 percent increase in May. The June increase was led by a 13.9 percent rise in European air passenger fares, which more than offset an 8.1 percent drop in Asian fares. Export air freight prices declined 0.2 percent in June, but despite that decrease, rose 16.9 percent over the past year.

Import and Export Price Index data for July 2011 are scheduled for release on Tuesday, August 16, 2011 at 8:30 a.m. (EDT).