August 2015 U.S. Import and Export Price Indexes

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U.S. import prices declined 1.8 percent in August following a 0.9-percent drop the previous month, the U.S. Bureau of Labor Statistics reported today. The August decrease was primarily driven by lower fuel prices, although falling nonfuel prices contributed to the decline as well. Prices for U.S. exports also fell in August, decreasing 1.4 percent, after a 0.4-percent decline in July.

Imports

All Imports: The price index for U.S. imports decreased 1.8 percent in August, the largest monthly decline since the index fell 3.2 percent in January. A sharp drop in fuel prices and lower nonfuel prices both contributed to the decrease in August. With the exception of May and June, import prices trended down over the past year, falling 11.4 percent between August 2014 and August 2015. The 12-month drop in August was the largest year-over-year decline since the index fell 12.0 percent in September 2009.

Fuel Imports: Import fuel prices declined 13.3 percent in August following a 5.7-percent fall the previous month. The August drop was the largest 1-month decrease since the index fell 20.1 percent in January. The decline in fuel prices was led by a 14.2-percent drop in August petroleum prices that followed a 5.9-percent decrease in July. In contrast, natural gas prices increased 0.9 percent in August. Overall fuel prices fell 48.3 percent over the past year. A 49.6-percent decline in petroleum prices and a 34.4-percent drop in natural gas prices each factored into the 12-month fall in fuel prices.

All Imports Excluding Fuel: The price index for nonfuel imports dropped 0.4 percent in August, after declining 0.3 percent in July and 0.2 percent in June. Nonfuel import prices last recorded a monthly advance when the index ticked up 0.1 percent in July 2014. In August, lower prices for nonfuel industrial supplies and materials as well as finished goods more than offset higher foods, feeds, and beverages prices. Prices for nonfuel imports decreased 3.0 percent for the year ended in August, the largest 12-month decline for the index since a 3.1-percent drop in October 2009.

Exports

All Exports: U.S. export prices decreased 1.4 percent in August following a 0.4-percent decline in July. Lower prices for both nonagricultural and agricultural exports contributed to the drop in August, which was the largest 1-month drop since a 1.7-percent decline in January. Prices for U.S. exports also decreased over the past 12 months, falling 7.0 percent, the largest year-over-year decline since the index fell 8.3 percent in July 2009.

All Exports Excluding Agriculture: Nonagricultural export prices declined 1.3 percent in August, after decreases of 0.5 percent in July and 0.1 percent in June. The August drop was the largest monthly fall since the index declined 1.8 percent in January. Decreasing prices for nonagricultural industrial supplies and materials, consumer goods, and capital goods all contributed to the drop. The price index for nonagricultural exports declined 6.2 percent over the past year, the largest 12-month drop since the index fell 6.6 percent in July 2009.

Agricultural Exports: The price index for agricultural exports fell 2.6 percent in August following a 1.1- percent advance the previous month. The August decline was the largest 1-month drop since a 3.1-percent decrease in August 2014. The August 2015 drop was led by a 16.8-percent decline in wheat prices, a 4.0- percent fall in soybean prices, and a 9.2-percent decrease in corn prices. Prices for overall agricultural exports declined 13.9 percent over the past 12 months.

SELECTED AUGUST HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China edged down 0.1 percent in August, after a 0.2- percent decline the previous month. Prices for imports from China have not recorded a monthly increase since the index rose 0.1 percent in December 2014. The price index for imports from Japan fell 0.2 percent in August following a 0.3-percent drop in July and a 0.5-percent decrease in June. Import prices from Canada, Mexico, and the European Union also declined in August, driven by lower fuel prices. Prices for imports from Canada fell 4.1 percent in August. August import prices from Mexico decreased 1.5 percent, and the price index for imports from the European Union declined 0.5 percent.

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials decreased 1.8 percent in August following a 0.9-percent drop the previous month. The August decrease was driven by lower prices for unfinished metals and chemicals.

Finished Goods: Prices for each of the major finished goods categories recorded decreases in August. Capital goods prices fell 0.2 percent, after a 0.3-percent decline in July. The index last recorded a monthly advance when prices for capital goods ticked up 0.1 percent in June 2014. Prices for automotive vehicles and consumer goods also decreased, declining 0.2 percent and 0.1 percent, respectively.

Foods, Feeds, and Beverages: In contrast, August prices for import foods, feeds, and beverages advanced 0.3 percent, after recording no change in July. The August increase was led by a 2.5-percent rise in the price index for fish and shellfish.

Transportation Services: Import air passenger fares fell 5.1 percent in August following a 4.1-percent drop the previous month. Both declines were primarily led by a drop in European fares, although lower Asian fares were also a contributing factor. The decline in import air passenger fares over the past 2 months pushed the index down 3.2 percent over the past year. Import air freight prices decreased 2.0 percent in August, after falling 3.2 percent in July. The price index for import air freight declined 8.2 percent over the past year.

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials decreased 3.7 percent in August, after a 1.5-percent decline the previous month. The August drop was driven by an 8.6-percent decrease in fuel prices.

Finished Goods: Consumer goods prices fell 0.4 percent in August which followed a 0.3-percent decline in July. The decrease was led by a 0.6-percent drop in the price index for medicinal, dental, and pharmaceutical materials. Prices for capital goods also fell in August, edging down 0.1 percent, and the price index for automotive vehicles recorded no change.

Transportation Services: Export air passenger fares rose 1.5 percent in August, after a 3.2-percent advance the previous month. Despite the recent advances, export air passenger fares fell 18.6 percent over the past year. Export air freight prices declined 0.8 percent in August and 1.7 percent over the past 12 months.

Import and Export Price Index data for September 2015 are scheduled for release on Friday, October 9, 2015 at 8:30 a.m. (EDT).