December 2012 U.S. Import and Export Price Indexes

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The price index for U.S. imports edged down 0.1 percent in December, the U.S. Bureau of Labor Statistics reported today, after declining 0.8 percent the previous month. Falling fuel and nonfuel prices each contributed to the December decrease. U.S. export prices also fell 0.1 percent in December following a 0.7 percent drop in November.

Imports

All Imports: Import prices declined for the second consecutive month in December after increasing the three months prior to November. Overall, import prices fell 1.5 percent in 2012, the first calendar year decrease for the index since a 10.1 percent drop in 2008. Import prices had risen 8.5 percent in 2011, 5.3 percent in 2010, and 8.6 percent in 2009.

Fuel Imports: The price index for import fuel edged down 0.1 percent in December after declining 2.8 percent the previous month. The decrease in both months was led by falling petroleum prices, down 0.8 percent in December and 3.4 percent in November. In contrast, natural gas prices rose 18.4 percent in December following an 18.0 percent rise in November. Overall fuel prices fell 6.4 percent in 2012 after increasing 24.9 percent the previous year. The decline over the past 12 months was driven by a 7.1 percent drop in petroleum prices which more than offset a 14.2 percent increase in natural gas prices.

All Imports Excluding Fuel: Prices for nonfuel imports also declined 0.1 percent in December following a 0.2 percent decrease in November. Lower prices for capital goods, consumer goods, and foods, feeds, and beverages all contributed to the December decline. Despite the recent decreases, nonfuel import prices ticked up 0.1 percent in 2012, after advancing 3.4 percent and 3.0 percent the two previous years. The 2012 increase was led by a 1.9 percent rise in automotive vehicles prices, as all other major categories either recorded declines or no change for the year.

Exports

All Exports: Export prices fell 0.1 percent in December after a 0.7 percent decline the previous month. Decreasing nonagricultural prices in December and November more than offset rising prices for agricultural exports. Despite the recent declines, the price index for overall exports rose 1.1 percent in 2012. That increase followed a 3.6 percent advance in 2011, and was the smallest calendar-year rise since the index declined 2.9 percent in 2008.

Agricultural Exports: Prices for agricultural exports ticked up 0.1 percent for the second consecutive month in December. The increases for both December and November were driven by higher fruit prices. Agricultural prices increased 12.8 percent in 2012 after rising 1.0 percent the previous year. The 2012 advance was led by rising prices for soybeans, corn, and wheat, up 31.6 percent, 26.9 percent, and 28.0 percent, respectively.

All Exports Excluding Agriculture: The price index for nonagricultural exports fell 0.2 percent in December, driven by falling prices for nonagricultural industrial supplies and materials, capital goods, and consumer goods. Overall nonagricultural prices declined 0.4 percent in 2012 after rising 4.0 percent in 2011 and 5.1 percent in 2010.

SELECTED DECEMBER HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China were unchanged in December and declined 0.7 percent in 2012. The yearly decrease followed increases of 3.6 percent in 2011 and 0.8 percent in 2010. Import prices from the European Union and Mexico fell 0.2 percent in December, while import prices from Japan edged down 0.1 percent. The price index for imports from Canada rose 0.3 percent, led by higher natural gas prices. For the year, import prices from Canada, the European Union, and Mexico all declined, falling 2.5 percent, 1.1 percent, and 3.6 percent, respectively. In contrast, prices for imports from Japan rose 1.0 percent over the past 12 months.

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials ticked up 0.1 percent in December, led by a 7.5 percent increase in prices for agricultural materials. For the year, the price index for nonfuel industrial supplies and materials fell 0.8 percent, driven mostly by a 4.9 percent drop in unfinished metal prices.

Finished Goods: Finished goods prices were mostly down in December; capital goods prices fell 0.2 percent and prices for consumer goods edged down 0.1 percent. Prices for automotive vehicles remained unchanged for the second consecutive month. In 2012, automotive vehicles prices rose 1.9 percent, while prices for consumer goods fell 0.1 percent. Capital goods prices were unchanged over the past year.

Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages fell 0.2 percent in December and 1.7 percent over the past 12 months. Lower coffee prices were the largest contributor to the annual decline, decreasing 26.8 percent in 2012.

Transportation Services: Import air passenger fares increased 6.8 percent in December, which helped contribute towards an 8.2 percent advance in 2012. A 16.1 percent rise in Asian fares was the largest contributor to the December increase, but the advance over the past year was led by a 17.5 percent jump in European fares. Import air freight prices decreased 0.7 percent in December as well as over the past 12 months.

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural materials declined 0.3 percent in December. A 0.7 percent drop in fuel prices and a 0.6 percent decrease in chemicals prices were the primary contributors to the decline. Nonagricultural industrial supplies and materials prices fell 2.2 percent over the past year, led by a 6.1 percent drop in fuel prices.

Finished Goods: Finished goods prices decreased overall in December as capital goods prices and prices for consumer goods each edged down 0.1 percent. Automotive vehicles prices were unchanged. In 2012, capital goods prices rose 1.0 percent, while automotive vehicles prices advanced 0.9 percent and prices for consumer goods were unchanged.

Transportation Services: Export air passenger fares advanced 6.2 percent in December, led by a 10.9 percent increase in Asian fares. The index for export air passenger fares rose 1.7 percent over the past year. Export air freight prices fell 0.7 percent in December. Despite the decline, prices for export air freight increased 1.9 percent in 2012.

Import and Export Price Index data for January 2013 are scheduled for release on Wednesday, February 13, 2013 at 8:30 a.m. (EST).