February 2012 U.S. Import and Export Price Indexes

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U.S. import prices increased 0.4 percent in February, the U.S. Bureau of Labor Statistics reported today, as higher fuel prices more than offset declining nonfuel prices. The price index for imports was unchanged in the two previous months. U.S. export prices also rose 0.4 percent in February after a 0.2 percent advance in January.

Imports

All Imports: The 0.4 percent February increase marked only the second time that import prices have recorded a monthly advance greater than 0.1 percent since the index rose 2.6 percent in April 2011. Prices for overall imports increased 5.5 percent over the past 12 months, the smallest year-over-year rise since the index advanced 5.3 percent between December 2009 and December 2010.

Fuel Imports: The price index for import fuel increased 1.4 percent in February after remaining unchanged in January and falling 0.5 percent in December. Fuel prices advanced 15.2 percent for the year ended in February. Both the monthly and 12-month rise in fuel prices were driven by higher petroleum prices which advanced 1.8 percent in February and 18.4 percent over the past 12 months. In contrast, natural gas prices fell for the third consecutive month, declining a further 10.1 percent in February after recording decreases of 6.8 percent and 4.0 percent the two previous months. Prices for natural gas fell 36.5 percent over the past year, the largest 12-month drop in the index since a 49.1 percent decrease in October 2009.

All Imports Excluding Fuel: Nonfuel import prices edged down 0.1 percent in February after ticking up 0.1 percent in January. In February, a 3.0 percent drop in food prices and a 0.1 percent decline in capital goods prices more than offset higher prices for nonfuel industrial supplies and materials. The price index for nonfuel imports rose 2.3 percent for the year ended in February.

Exports

All Exports: The 0.4 percent advance in export prices in February marked the largest monthly increase since a 0.5 percent rise in September. Higher nonagricultural prices more than offset a decline in the price index for agricultural exports. Despite recording the largest monthly increase in five months, overall export prices rose only 1.5 percent over the past 12 months, the smallest year-over-year advance since a 0.4 percent rise for the November 2008-09 period.

Agricultural Exports: Agricultural prices fell 0.9 percent in February after rising 1.1 percent the previous month. The decline was led by lower prices for fruits, cotton, and vegetables, down 6.8 percent, 7.1 percent, and 6.5 percent, respectively. Corn and soybean prices, which had driven the increase in agricultural prices in January recorded little movement in February. Prices for corn edged down 0.2 percent for the month, while soybeans prices rose 0.4 percent. Overall agricultural prices decreased 6.2 percent over the past year.

All Exports Excluding Agriculture: In contrast, prices for nonagricultural exports increased 0.5 percent in February after recording no change in January. Higher prices for nonagricultural industrial supplies and materials and each of the major finished goods areas contributed to the increase. The price index for nonagricultural exports advanced 2.6 percent over the past 12 months.

SELECTED FEBRUARY HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices increased 1.1 percent in February following a 0.9 percent decline the previous month. A turnaround in metals prices led the increase in February after contributing to the decline in January. In February, unfinished metals prices advanced 2.3 percent while finished metals prices rose 1.6 percent.

Finished Goods: Finished goods prices recorded little change overall in February. Prices for capital goods edged down 0.1 percent, driven by a 1.2 percent drop in the price index for oil drilling, mining, and construction machinery. Automotive vehicles prices and prices for consumer goods were unchanged.

Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages fell 3.0 percent in February after rising 2.3 percent in January. The decline was led by a 25.5 percent drop in vegetable prices, which followed a 13.8 percent increase the previous month. The price indexes for coffee, food oils, and fish also recorded decreases in February.

Imports by Locality of Origin: Import prices from China ticked up 0.1 percent in February following a 0.3 percent increase the previous month. Prices for imports from China have not recorded a monthly decline since June 2010, and advanced 5.1 percent from June 2010 to February 2012. Import prices from Canada and Japan also rose in February, increasing 0.7 percent and 0.2 percent, respectively. In contrast, the price index for imports from Mexico fell 0.6 percent while prices of imports from the European Union edged down 0.1 percent.

Transportation Services: Import air passenger fares rose for the third consecutive month in February, advancing 0.3 percent after a 0.2 percent rise in January and a 1.6 percent increase in December. The February advance was primarily driven by a 1.3 percent increase in Asian fares. In contrast, import air freight prices fell for the sixth consecutive month in February, declining a further 1.2 percent.

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices advanced 1.2 percent in February following a 0.4 percent decline in January. Higher prices for nonferrous metals, chemicals, and steelmaking materials -- up 4.4 percent, 0.9 percent, and 7.0 percent, respectively -- all contributed to the February increase in the price index for nonagricultural industrial supplies and materials.

Finished Goods: Each of the major finished goods categories increased for the second consecutive month in February. Capital goods prices rose 0.2 percent following a 0.3 percent advance in January, driven by a 1.0 percent increase in prices for transportation equipment, excluding motor vehicles. The price index for consumer goods advanced 0.3 percent for the second consecutive month, and prices for automotive vehicles rose 0.2 percent in February following a 0.2 percent increase the previous month.

Transportation Services: Export air passenger fares dropped 11.2 percent in February after rising 2.3 percent and 3.8 percent, respectively, in each of the two previous months. The decrease in February was primarily led by a 17.8 percent drop in Asian fares and an 11.4 percent decline in Latin American/Caribbean fares. Export air freight prices increased 0.3 percent in February after a 1.6 percent advance in January.

Import and Export Price Index data for March 2012 are scheduled for release on Wednesday, April 11, 2012 at 8:30 a.m. (EDT).