June 2012 U.S. Import and Export Price Indexes

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U.S. import prices fell 2.7 percent in June, the U.S. Bureau of Labor Statistics reported today, following a 1.2 percent decrease in May. Lower prices for both fuel and nonfuel imports contributed to the overall decline. U.S. export prices fell 1.7 percent in June after a 0.4 percent drop the previous month.

Imports

All Imports: Import prices decreased 2.7 percent in June after declining 1.2 percent and 0.1 percent the previous two months. The June drop was the largest monthly decrease since the index fell 4.6 percent in December 2008. The price index for U.S. imports decreased 2.6 percent over the past 12 months, the largest year-over-year decline since the October 2008-09 period. In contrast, import prices rose 13.6 percent for the year ended June 2011.

Fuel Imports: Fuel prices declined 10.1 percent in June after recording a 4.6 percent decrease in May and a 0.8 percent drop in April. The June decline in import fuel prices was the largest one-month drop in the index since a 22.2 percent decrease in December 2008. In June, a 10.5 percent decline in petroleum prices more than offset a 7.4 percent increase in natural gas prices, the first advance for the index since a 3.6 percent rise in November. Fuel prices fell 12.0 percent for the year ended in June, as a 10.7 percent drop in petroleum prices and a 44.7 percent decrease in natural gas prices both contributed to the overall decline.

All Imports Excluding Fuel: The price index for nonfuel imports also fell in June, decreasing 0.3 percent following a 0.1 percent drop the previous month. Each of the major end use categories recorded declines in June. Despite the declines in each of the past two months, nonfuel prices rose 0.6 percent over the past year. However, the June 2011-12 increase was the smallest 12-month gain for the index since a 0.3 percent advance between December 2008 and December 2009.

Exports

All Exports: The price index for U.S. exports declined 1.7 percent in June, the largest monthly decline since the index fell 2.0 percent in October 2011. Falling prices for both agricultural and nonagricultural exports each contributed to the decline. U.S. export prices also fell overall for the June 2011-12 period, decreasing 2.1 percent. The decline over the past year was the largest 12-month drop since the index declined 3.6 percent between October 2008 and October 2009.

Agricultural Exports: Agricultural prices fell 4.0 percent in June, the first monthly decrease since a 0.4 percent decline in February, and the largest monthly drop since a 6.5 percent decrease in October 2011. The June decrease was driven by a 9.0 percent decline in soybean prices, an 8.3 percent fall in corn prices, and a 14.3 percent drop in cotton prices. Overall agricultural prices also decreased for the year ended in June, declining 6.1 percent.

All Exports Excluding Agriculture: Prices for nonagricultural exports fell for the second consecutive month in June, decreasing 1.4 percent after falling 0.6 percent in May. Declining prices for nonagricultural industrial supplies and materials prices, capital goods prices, and automotive vehicles prices more than offset rising consumer goods prices. Nonagricultural prices fell 1.6 percent over the past year, the first year-over- year drop since a 2.9 percent decrease from October 2008 to October 2009.

SELECTED JUNE HIGHLIGHTS

Import Prices

Nonfuel Import Highlights: The overall decrease in nonfuel prices was led by a 1.3 percent decline in the price index for nonfuel industrial supplies and materials. A 3.5 percent drop in unfinished metals prices and a 0.8 percent decline in prices for chemicals were the main contributors to the drop in nonfuel industrial supplies and materials prices. The price indexes for each of the major finished goods categories also recorded declines in June; prices for capital goods fell 0.2 percent, while consumer goods prices and prices for automotive vehicles each edged down 0.1 percent. Prices for foods, feeds, and beverages decreased 1.0 percent in June, led by lower prices for fruit and food oils.

Imports by Locality of Origin: Prices from Canada, Mexico, and the European Union all decreased in June, led by lower fuel prices. The price index for imports from Canada fell 2.9 percent in June following declines of 0.5 percent and 1.4 percent the two previous months. Import prices from Mexico decreased 2.2 percent in June after a 0.9 percent drop in May and a 0.3 percent decline in April, and prices for imports from the European Union declined for the second consecutive month in June, falling 0.7 percent after edging down 0.1 percent in May. In contrast, the price index for imports from Japan ticked up 0.1 percent in June, while import prices from China recorded no change.

Transportation Services: Import air passenger fares rose 10.3 percent in June, the largest monthly advance for the index since a 13.0 percent increase in June 2009. While the current rise was led by a seasonal increase in European fares, up 20.0 percent in June, the index for overall air passenger fares advanced 8.6 percent over the past 12 months. Import air freight prices also increased in June, rising 0.3 percent for the second consecutive month. Despite the recent increases, prices for import air freight fell 3.4 percent for the year ended in June.

Export Prices

Nonagricultural Export Highlights: A 3.8 percent drop in nonagricultural industrial supplies and materials prices led the decline in overall nonagricultural prices in June. The decrease was driven by an 8.6 percent decline in export fuel prices, although lower prices for nonferrous metals and chemicals were also contributing factors. Finished goods prices were mixed in June. The price indexes for capital goods and automotive vehicles each edged down 0.1 percent, while consumer goods prices rose 0.2 percent.

Transportation Services: Export air passenger fares advanced 3.1 percent in June following a 2.9 percent increase the previous month. The June rise was driven by a 14.7 percent seasonal advance in European fares. Export air passenger fares rose over the past year, advancing 6.0 percent. Prices for export air freight fell 1.8 percent in June, the largest monthly decrease since a 3.0 percent decline in May 2009. The price index for export air freight increased 0.4 percent over the past 12 months.

Announcement Beginning with the July Import-Export Price Indexes data release scheduled for August 10, 2012, existing import price indexes by locality of origin will be expanded to include price indexes for select industry areas. These new indexes will be available at http://www.bls.gov/web/ximpim/ippsloor.htm. In total, 249 indexes will be added across the various localities, including 31 new price indexes for imports from China, and 20 new price indexes for imports from the European Union.

Import and Export Price Index data for July 2012 are scheduled for release on Friday, August 10, 2012 at 8:30 a.m. (EDT).