November 2014 U.S. Import and Export Price Indexes

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U.S. import prices declined 1.5 percent in November, after falling 1.2 percent in October, the U.S. Bureau of Labor Statistics reported today. Both decreases were driven by declining fuel prices. The price index for U.S. exports fell 1.0 percent in November following a 0.9-percent drop the previous month.

Imports

All Imports: Prices for U.S. imports fell 1.5 percent in November, the largest monthly drop in import prices since a 2.3-percent decrease in June 2012. Led by lower fuel prices, overall import prices declined in each of the past 5 months, falling 4.2 percent over that period. The price index for imports fell 2.3 percent over the past 12 months, the largest year-over-year decline since a 2.7-percent decrease between April 2012 and April 2013.

Fuel Imports: Fuel prices decreased 6.7 percent in November, after declining 6.0 percent in October. Those drops were the largest monthly decreases since the index fell 8.5 percent in June 2012. Both monthly declines were driven by lower petroleum prices, which fell 6.9 percent in November and 6.4 percent in October. In November, a 4.6-percent decrease in natural gas prices also contributed to the overall drop in fuel prices, and followed a 0.4-percent advance the previous month. Fuel prices fell 11.5 percent for the year ended November, the largest 12-month drop since the index fell 13.4 percent in July 2012. The November 2014 decrease was led by a 12.3-percent drop in petroleum prices, which more than offset a 10.6-percent increase in natural gas prices over the same period.

All Imports Excluding Fuel: The price index for nonfuel imports decreased 0.2 percent for the third consecutive month in November. Prior to the last 3 months, the last time the index fell by more than 0.2 percent was a 0.4-percent decline in July 2013. Lower prices for nonfuel industrial supplies and materials; foods, feeds, and beverages; and each of the major finished goods categories contributed to the overall decline. Nonfuel import prices were unchanged over the past 12 months as higher prices for consumer goods and foods, feeds, and beverages offset falling prices for nonfuel industrial supplies and materials, automotive vehicles, and capital goods.

Exports

All Exports: Export prices fell 1.0 percent in November, the largest monthly decline since a 1.0-percent drop in April. Those were the largest 1-month decreases since the index fell 1.7 percent in June 2012. In November, lower prices for nonagricultural exports more than offset higher agricultural prices. The price index for overall exports fell 1.9 percent for the November 2013-14 period, the largest 12-month drop since a 2.2-percent decline in October 2013.

Agricultural Exports: Prices for agricultural exports increased 0.5 percent in November following a 10.0- percent decline over the previous 5 months. The November increase was the largest monthly advance since a 1.5-percent rise in April. A 7.0-percent advance in soybean prices led the overall increase, although higher prices for corn and wheat also contributed to the advance. Despite the November rise, agriculture exports fell 3.8 percent over the past 12 months. Lower prices for soybeans, corn, and wheat all factored into the decline over the past year.

All Exports Excluding Agriculture: The price index for nonagricultural exports decreased 1.2 percent in November, after falling 0.8 percent in October. Falling prices for both nonagricultural industrial supplies and materials and finished goods contributed to the overall decline. Nonagricultural exports decreased 1.7 percent between November 2013 and November 2014, as lower prices for nonagricultural industrial supplies and materials and consumer goods more than offset higher prices for capital goods and automotive vehicles.

SELECTED NOVEMBER HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China were unchanged for the third consecutive month in November. The price index for imports from China also recorded no change over the past year. Prices for imports from Japan edged down 0.1 percent in November, after recording no change the previous month. Import prices from Japan fell 1.2 percent over the past year. Led by lower fuel prices, the import price indexes for imports from Canada, the European Union, and Mexico all decreased in November. Prices for imports from Canada declined 2.3 percent, import prices from the European Union dropped 0.6 percent, and the price index for imports from Mexico fell 0.7 percent.

Nonfuel Industrial Supplies and Materials: Import prices for nonfuel industrial supplies and materials decreased 0.9 percent following a 0.7-percent decline in October. Both drops were driven by falling metals prices. Unfinished metals prices decreased 2.1 percent in November, after falling 3.6 percent the previous month. Lower prices for gold and other precious metals led the declines in each month.

Finished Goods: Each of the major finished goods areas edged down 0.1 percent in November. The November declines in the price indexes for consumer goods and automotive vehicles followed decreases of 0.2 percent in October. Capital goods prices decreased following a 0.1-percent decline the previous month.

Foods, Feeds, and Beverages: The price index for import foods, feeds, and beverages decreased 0.4 percent in November, after advancing 1.1 percent in October. The November downturn was led by a 2.2- percent drop in fish and shellfish prices and a 4.1-percent decline in coffee prices.

Transportation Services: Import air passenger fares rose 1.0 percent in November following a 2.4-percent increase the previous month. Higher European fares, which advanced 2.8 percent in November and 2.3 percent in October, were the main contributor to both monthly increases. The index for overall import air passenger fares increased 1.9 percent over the past 12 months. Prices for import air freight declined 0.5 percent in November, after falling 1.2 percent in October. Import air freight prices decreased 3.6 percent for the year ended in November.

Export Prices

Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies and materials decreased 3.2 percent in November following a 1.9-percent drop the previous month. The November decline was driven by a 7.9-percent fall in fuel prices, although lower prices for nonferrous metals and chemicals also factored into the overall decrease.

Finished Goods: Finished goods prices were mostly down in November. Consumer goods prices fell 0.3 percent for the third consecutive month, led by a 0.6-percent decline in medical, dental, and pharmaceutical materials prices. Capital goods prices also fell in November, edging down 0.1 percent. The price index for automotive vehicles recorded no change.

Transportation Services: Export air passenger fares fell 4.9 percent in November, after a 3.0-percent drop in October. The November decline was led by a 5.7-percent decrease in European fares. Overall export air passenger fares fell 1.1 percent for the year ended in November. Export air freight prices decreased 0.3 percent in November following a 0.4-percent decline the previous month. Despite the recent drops, the price index for export air freight increased 7.2 percent over the past year.

Import and Export Price Index data for December 2014 are scheduled for release on Wednesday, January 14, 2015 at 8:30 a.m. (EST).