July 2013 U.S. Import and Export Price Indexes

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Prices for U.S. imports rose 0.2 percent in July, the U.S. Bureau of Labor Statistics reported today, after decreasing in each of the previous 4 months. The July upturn was driven by rising fuel prices which more than offset lower nonfuel prices. In July, U.S. exports edged down 0.1 percent for the second consecutive month.

Imports

All Imports: Import prices turned up 0.2 percent in July, after declining 1.8 percent over the prior 4 months. The July increase was the first advance since import prices rose 0.9 percent in February. The price index for overall imports increased 1.0 percent over the past year, the largest 12-month rise since import prices advanced 3.5 percent between March 2011 and March 2012.

Fuel Imports: Fuel prices increased 2.5 percent in July following a 0.8 percent decline in June, a 1.7 percent drop in May, and a 2.4 percent decrease in April. The July advance was the first increase in fuel prices since the index rose 3.6 percent in February, and was led by a 3.2 percent advance in petroleum prices. In contrast, natural gas prices fell 13.6 percent in July. Import fuel prices also rose on a 12-month basis, increasing 8.5 percent for the year ended in July. A 7.8 percent advance in petroleum prices and a 49.3 percent rise in natural gas prices each contributed to the year-over-year increase in fuel prices.

All Imports Excluding Fuel: In contrast to fuel prices, nonfuel prices continued to decrease in July, declining 0.4 percent. The decrease followed a 0.3 percent drop in June and was the fifth consecutive monthly decline. In July, falling prices for nonfuel industrial supplies and materials, automotive vehicles, and consumer goods more than offset rising prices for capital goods and foods, feeds, and beverages.

Exports

All Exports: U.S. export prices edged down 0.1 percent in July, and continued the downward trend over the previous 4 months. In July, the decline was led by lower agricultural prices. Despite the decreases in each of the past 5 months, overall export prices rose 0.4 percent for the year ended in July.

Agricultural Exports: Prices for agricultural exports declined 0.3 percent in July, following increases of 0.8 percent in June and 1.0 percent in May. The July decline was driven by lower prices for wheat, corn, and fruit, down 7.4 percent, 3.3 percent, and 4.6 percent, respectively, which more than offset higher prices for soybeans and nuts. Agricultural export prices increased 3.1 percent over the past year.

All Exports Excluding Agriculture: The price index for nonagricultural prices recorded no change in July, after decreasing 1.6 percent between February and June. In July, falling prices for nonagricultural industrial supplies and materials offset rising finished goods prices. Overall nonagricultural export prices also recorded no change over the past 12 months following a 1.9 percent decline for the year ended July 2012.

SELECTED JULY HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Prices for imports from Japan fell 0.5 percent in July following a 0.3 percent decrease the previous month. Import prices from Japan declined 2.4 percent over the past 12 months, the largest year-over-year decrease for the index since a 2.5 percent decline between December 2001 and December 2002. The price index for imports from China edged down 0.1 percent in July after recording no change in June. Prices for imports from China declined 1.4 percent over the past year, the largest 12-month decrease for the index since a 1.7 percent drop for the year ended in January 2010. Import prices from Canada also fell in July, declining 0.1 percent. In contrast, the price indexes for imports from the European Union and Mexico both rose in July, increasing 0.2 percent and 0.5 percent, respectively.

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials fell 1.6 percent in July, after a 1.0 percent decline in June. Falling metal prices, notably for gold and other precious metals, drove the declines in each month. In July, declining chemical prices also contributed to the overall decrease in nonfuel industrial supplies and materials prices.

Finished Goods: Finished goods prices were mostly down in July. Automotive vehicles prices fell 0.5 percent, mostly attributable to falling prices for passenger cars. The July drop in automotive vehicles prices paralleled the recent rise in the value of the U.S. dollar compared to the yen, and was the largest drop since a 1.1 percent decline in December 1992. The price index for consumer goods also fell in July, decreasing 0.2 percent. In contrast, capital goods prices ticked up 0.1 percent in July.

Foods, Feeds, and Beverages: Prices for import foods, feeds, and beverages advanced 0.2 percent in July following a 1.0 percent decline the previous month. The July increase was led by a 2.8 percent rise in vegetable prices.

Transportation Services: Import air passenger fares fell 3.9 percent in July, after jumping 10.7 percent in June. The decrease in July was driven by a downturn in European fares, down 8.0 percent for the month. Despite the July decline, import air passenger fares advanced 2.1 percent over the past 12 months. The price index for import air freight advanced 0.3 percent in July, while decreasing 2.1 percent over the past year.

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices fell 0.3 percent in July, after decreasing 0.5 percent in June. Both declines were driven by lower prices for nonferrous metals, which fell 4.1 percent in July and 2.5 percent in June.

Finished Goods: Each of the major finished goods areas recorded increases in July. Capital goods prices rose 0.3 percent, the largest monthly advance since a 0.3 percent rise in February, while the price indexes for consumer goods and automotive vehicles each ticked up 0.1 percent.

Transportation Services: Export air passenger fares continued to rise in July, advancing 1.5 percent, after advances of 2.1 percent in June and 5.2 percent in May. In July, the increase was mostly driven by a 6.2 percent rise in Latin American/Caribbean fares. Despite the recent advances, export air passenger fares fell 7.5 percent over the past year. Export air freight prices edged down 0.1 percent in July, while increasing 1.0 percent over the past 12 months.

Import and Export Price Index data for August 2013 are scheduled for release on Thursday, September 12, 2013 at 8:30 a.m. (EDT).