October 2011 U.S. Import and Export Price Indexes

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U.S. import prices declined 0.6 percent in October, the U.S. Bureau of Labor Statistics reported today, after recording no change in September. Decreasing prices for both nonfuel and fuel imports contributed to the October drop. Export prices fell 2.1 percent in October, the largest monthly decline since a 2.2 percent decrease in December 2008.

Imports

All Imports: Import prices fell for the third time in five months in October, declining 0.6 percent for the month. The decrease matched a 0.6 percent decline in June, the largest one-month drop since the index fell 1.2 percent in June 2010. The price index for overall imports fell 1.4 percent over the past five months, primarily driven down over that period by declining fuel prices. Despite the recent decreases, import prices advanced 11.0 percent over the past year.

Fuel Imports: Fuel prices fell 1.3 percent in October, following declines of 0.7 percent in September and 2.1 percent in August. Approximately 73 percent of the October decrease was attributable to a 1.0 percent drop in petroleum prices, and a 10.9 percent decline in natural gas prices was also a contributing factor. Despite the recent declines, fuel prices increased 33.8 percent for the year ended in October. Petroleum and natural gas prices advanced 36.0 percent and 1.4 percent, respectively, over the past 12 months.

All Imports Excluding Fuel: The price index for nonfuel imports declined 0.2 percent in October, the first monthly decrease in the index since a 0.3 percent drop in July 2010. The October decline followed 0.2 percent increases in each of the previous three months, and was led by falling prices for nonfuel industrial supplies and materials, capital goods, and foods, feeds, and beverages, which more than offset rising prices for consumer goods and automotive vehicles. Nonfuel import prices rose 4.9 percent for the year ended in October.

Exports

All Exports: Overall export prices fell 2.1 percent in October, driven lower by falling prices for both nonagricultural and agricultural exports. The October decline followed advances of 0.4 percent and 0.5 percent the two previous months. Despite the October drop, overall export prices increased 6.3 percent over the past year.

Agricultural Exports: Agricultural prices decreased 6.5 percent in October after rising 1.9 percent in September and 1.6 percent in August. The October decline was led by 19.0 percent decreases for both soybeans and corn. Despite the recent decline, the price index for agricultural exports rose 11.5 percent for the year ended in October. Higher prices for corn, meat, wheat, fish, and soybeans all contributed to the 12- month advance in agricultural prices.

All Exports Excluding Agriculture: Prices for nonagricultural exports declined 1.5 percent in October, the first monthly decrease since a 0.2 percent drop in July 2010, and the largest drop since a 1.9 percent decline in December 2008. The October decrease was primarily driven by falling nonagricultural industrial supplies and materials prices. The price index for nonagricultural exports increased 5.7 percent over the past 12 months.

SELECTED OCTOBER HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 1.4 percent in October following a 0.6 percent advance in September. The October decrease was mostly led by a 4.1 percent decline in unfinished metals prices. A 10.0 percent drop in other precious metals prices and a 10.2 percent decrease in copper prices were the main contributors to the decline in the price index for unfinished metals. Despite the October decline, unfinished metals prices rose 16.5 percent over the past year.

Finished Goods: Finished goods prices were mixed in October. Prices for consumer goods rose 0.7 percent, the largest monthly increase since a 1.0 percent advance in October 1992. Automotive prices also rose in October, ticking up 0.1 percent. In contrast, prices for capital goods fell 0.3 percent, led by lower computer and semiconductor prices, down 1.7 percent and 1.6 percent, respectively.

Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages fell 1.0 percent in October, led by a 10.7 percent decline in food oil and oilseeds prices and a 4.4 percent drop in prices for fruit and fruit preparations.

Imports by Locality of Origin: Prices for imports from China advanced 0.4 percent in October and 3.9 percent over the past 12 months, the largest year-over-year advance for the index since a 4.3 percent increase in October 2008. The price index for imports from the European Union also rose 0.4 percent in October. In contrast, prices for imports from Canada and Mexico each fell in October, declining 1.4 percent and 0.7 percent, respectively. Import prices from Japan were unchanged in October.

Transportation Services: The index for import air passenger fares rose 1.9 percent in October, driven by 2.0 percent increases for European fares and for Latin American/Caribbean fares. The October rise was the first increase since a 6.8 percent advance in June. Import air freight prices decreased 2.3 percent in October.

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices declined 3.7 percent in October, the largest monthly decrease for the index since a 5.8 percent drop in December 2008. A 5.6 percent drop in petroleum prices and a 5.8 percent decline in the price index for nonferrous metals were the largest contributors to the October decrease.

Finished Goods: Prices for consumer goods fell 0.3 percent in October following a 0.2 percent increase the previous month. In contrast, automotive vehicles prices ticked up 0.1 percent in October. The increase was driven by higher prices for passenger cars, which advanced 0.9 percent, an increase that was largely offset by a 3.4 percent decline in the price index for engines and engine parts. Prices for capital goods recorded no change in October.

Transportation Services: Export air passenger fares fell 2.3 percent in October after a 13.4 percent drop in September. The October decrease was led by lower fares from Asia and from the Latin America/Caribbean region. Export air freight prices fell 0.8 percent in October.

Import and Export Price Index data for November 2011 are scheduled for release on Wednesday, December 14, 2011 at 8:30 a.m. (EST).