October 2014 U.S. Import and Export Price Indexes

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The price index for U.S. imports decreased 1.3 percent in October following a 0.6-percent decline in September, the U.S. Bureau of Labor Statistics reported today. The October drop was mostly led by falling fuel prices. U.S. export prices declined 1.0 percent in October, after falling 0.4 percent in September and 0.5 percent in August.

Imports

All Imports: Import prices fell 1.3 percent in October, after decreasing 1.6 percent over the previous 3 months. The October decline was the largest monthly drop since a 2.3-percent decrease in June 2012. In October, the drop was led by lower fuel prices, although nonfuel prices fell as well. The price index for overall imports declined 1.8 percent over the past 12 months, the largest year-over-year drop since a 1.8- percent decrease in November 2013.

Fuel Imports: The price index for import fuel declined 6.5 percent in October following decreases in each of the previous 3 months. The October decline was the largest 1-month drop since the index fell 8.5 percent in June 2012. In October, a 6.9-percent decrease in petroleum prices led the decline in overall fuel prices. In contrast, natural gas prices rose 0.8 percent. Fuel prices also fell for the year ended in October, declining 10.1 percent. The price index for petroleum decreased 11.1 percent from October 2013 to October 2014, and natural gas prices increased 25.4 percent for the same period.

All Imports Excluding Fuel: Prices for nonfuel imports declined 0.2 percent in October, after edging down 0.1 percent the previous month. In October, lower prices for nonfuel industrial supplies and materials, consumer goods, and capital goods more than offset rising foods, feeds, and beverages prices. Despite the recent increases, nonfuel import prices increased 0.3 percent over the past year. Higher prices for foods, feeds, and beverages and consumer goods more than offset falling prices for automotive vehicles, capital goods, and nonfuel industrial supplies and materials.

Exports

All Exports: Overall export prices declined 1.0 percent in October. Other than a 1.0-percent decrease in April, that was the largest 1-month drop for the index since a 1.7-percent decline in June 2012. In October lower prices for agricultural exports and nonagricultural exports drove the decrease. Export prices also fell for the year ended in October, declining 0.8 percent, the largest 12-month drop since a 1.0-percent decrease between February 2013 and February 2014.

Agricultural Exports: The price index for agricultural exports fell 2.1 percent in October following a 1.7- percent decline in September. Lower prices for soybeans, wheat, and corn led the overall decline for both months. Agricultural prices fell 4.6 percent over the past 12 months, a decline also driven by falling grains prices.

All Exports Excluding Agriculture: Prices for nonagricultural exports decreased 0.9 percent in October, the largest monthly decrease since a 1.2-percent drop in April. Lower prices for nonagricultural industrial supplies and materials, capital goods, and consumer goods more than offset higher automotive vehicle prices. The price index for nonagricultural exports declined 0.4 percent over the past year, driven by decreasing prices for nonagricultural industrial supplies and materials which offset higher prices for each of the major finished goods areas.

SELECTED OCTOBER HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Prices for imports from China ticked up 0.1 percent in October, after edging down 0.1 percent in September. Import prices from China rose 0.3 percent for the year ended in October following a 0.9-percent decline for the previous 12-month period. The price index for imports from Japan advanced 0.1 percent in October, led by a 0.7-percent rise in transportation equipment prices. Falling fuel prices drove down prices for imports from Canada, Mexico, and the European Union in October. Import prices from Canada fell 2.3 percent, prices for imports from Mexico declined 0.9 percent, and the price index for imports from the European Union decreased 0.2 percent.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 0.7 percent in October following a 0.4-percent drop the previous month. The October decline was driven by an 8.3-percent decrease in other precious metals prices and a 4.7-percent drop in gold prices.

Finished Goods: Finished goods prices declined overall in October. Consumer goods prices declined 0.2 percent and prices for capital goods edged down 0.1 percent. The price index for automotive vehicles recorded no change in October.

Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages increased 1.4 percent in October, after ticking up 0.1 percent in September. The October advance was led by a 20.5-percent increase in vegetable prices.

Transportation Services: Import air passenger fares rose 2.4 percent in October, the first monthly advance since the index increased 6.9 percent in June. In October, a 2.3-percent rise in European fares, a 4.5-percent increase in Latin American/Caribbean fares, and a 1.4-percent advance in Asian fares all contributed to the overall rise. Import air passenger fares also increased over the past year, advancing 4.4 percent. The price index for import air freight declined 1.2 percent in October and 1.0 percent over the past 12 months.

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials declined 2.0 percent in October, after a 0.6-percent decrease in September. Falling prices for fuel and metals led the drop. In October, fuel prices declined 4.6 percent and prices for metals decreased 3.5 percent.

Finished Goods: Finished goods prices were mixed in October. The price indexes for capital goods and consumer goods each declined, falling 0.2 percent and 0.3 percent, respectively. In contrast, automotive vehicle prices advanced 0.2 percent, led by a 0.3-percent increase in passenger car prices that were largely attributable to year-end model changeovers.

Transportation Services: In contrast to imports, export air passenger fares declined 2.2 percent in October, after an 11.4-percent decline the previous month. Both decreases were driven by lower Asian fares. The index for export air passenger fares increased 3.2 percent for the year ended in October. Export air freight prices declined 0.4 percent for the second consecutive month in October. Despite the recent drops, export air freight prices rose 7.4 percent over the past year.

Import and Export Price Index data for November 2014 are scheduled for release on Thursday, December 11, 2014 at 8:30 a.m. (EST).