January 2016 U.S. Import and Export Price Indexes

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In January, prices for U.S. imports decreased 1.1 percent for the second consecutive month, the U.S. Bureau of Labor Statistics reported today. In both months, the declines were primarily driven by lower fuel prices. U.S. export prices also fell in January, decreasing 0.8 percent. The decline followed a 1.1-percent drop the previous month.

Imports

All Imports: The price index for overall imports fell 1.1 percent in January, the largest monthly decrease for the index since a 1.8-percent drop in August 2015. Both fuel and nonfuel prices continued to trend down. Import prices fell 6.2 percent over the past year. Despite declining in January, the 12-month drop in import prices was the smallest over-the-year decrease since the index fell 5.6 percent between December 2013 and December 2014.

Fuel Imports: Import fuel prices declined 12.4 percent in January, the largest 1-month drop since a 12.7- percent decline in August 2015. Import fuel prices have not risen on a monthly basis since a 1.5-percent advance in June 2015. The January drop was led by a 13.4-percent decline in petroleum prices, although natural gas prices also fell, decreasing 3.2 percent. The price index for import fuel declined 34.5 percent for the year ended in January, while over the same period petroleum prices fell 35.3 percent and natural gas prices decreased 40.1 percent.

All Imports Excluding Fuel: In January, prices for nonfuel imports declined 0.2 percent after declining 0.3 percent in each of the past 6 months. Lower prices for nonfuel industrial supplies and materials as well as capital goods drove the January drop in nonfuel import prices. In contrast, the price indexes for foods, feeds, and beverages; automotive vehicles; and consumer goods all rose in January. Nonfuel import prices decreased 2.9 percent over the past 12 months with each of the major import categories factoring into the decline.

Exports

All Exports: Prices for U.S. exports fell 0.8 percent in January and have not recorded a monthly advance since the index rose 0.5 percent in May 2015. In January, declining prices for both agricultural exports and nonagricultural exports contributed to the overall drop. The price index for overall exports fell 5.7 percent for the year ended in January.

Agricultural Exports: Agricultural export prices decreased 1.1 percent in January, after declining 1.0 percent in December and 0.9 percent in November. Lower nut prices, which fell 7.8 percent in January, were the largest contributor to the decline for all 3 months. In January, falling prices for soybeans, meat, corn, and wheat also factored into the decrease. Prices for agricultural exports fell 12.7 percent from January 2015 to January 2016.

All Exports Excluding Agriculture: The price index for nonagricultural exports declined 0.8 percent in January, after a 1.1-percent decrease in December. The January drop was driven by lower nonagricultural industrial supplies and materials prices, although lower consumer goods prices and capital goods prices also contributed to the overall drop in nonagricultural export prices. In contrast, automotive vehicle prices advanced in January. Nonagricultural export prices declined 5.0 percent for the January 2015-16 period, following a 4.9-percent decrease over the previous 12-month period.

SELECTED JANUARY HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China edged down 0.1 percent in January, following 0.2-percent decreases in each of the previous 2 months. Prices for imports from China have not increased on a monthly basis since ticking up 0.1 percent in December 2014. The price index for imports from Japan also fell 0.1 percent in January. Import prices from Japan have not recorded a monthly advance since the index rose 0.2 percent in March 2014. Prices for imports from Canada declined 2.8 percent in January, led by lower fuel prices. Falling fuel prices in January also impacted the price index for imports from the European Union and from Mexico, which declined 0.3 percent and 0.2 percent, respectively.

Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials fell 1.5 percent in January, after decreasing 1.1 percent the previous month. The January decline was led by a 2.2-percent drop in chemical prices and a 1.9-percent decrease in metal prices.

Finished Goods: The major import finished goods categories were mixed in January. Capital goods prices declined 0.2 percent and last recorded a monthly advance when the index increased 0.1 percent in June 2014. In contrast, prices for automotive vehicles rose 0.2 percent, and consumer goods prices ticked up 0.1 percent.

Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages advanced 0.6 percent in January, the largest monthly rise for the index since a 0.7-percent increase in December 2014. The January advance was driven by a 10.9-percent increase in vegetable prices.

Transportation Services: Import air passenger fares declined 1.0 percent in January, following a 0.6- percent drop the previous month. In January, lower Asian and Latin American/Caribbean fares helped to offset an 11.0-percent increase in European fares. Overall import air passenger fares fell 4.3 percent over the past 12 months. The price index for import air freight declined 4.6 percent in January, the largest monthly drop for the index since a 4.9-percent decrease in December 2008. Import air freight prices fell 7.5 percent for the year ended in January.

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices declined 2.1 percent in January, after a 3.1-percent drop in December. Both decreases were led by falling fuel prices.

Finished Goods: The price indexes for consumer goods and capital goods each fell in January while prices for automotive vehicles ticked up 0.1 percent. Consumer goods prices declined 0.4 percent for the second consecutive month. Prices for export capital goods edged down 0.1 percent in January and 0.7 percent over the past year, the largest 12-month decrease since the index fell 0.7 percent in January 2004. Those were the largest over-the-year declines since capital goods prices decreased 1.0 percent in November 2003.

Transportation Services: Export air passenger fares increased 6.2 percent in January, the largest monthly advance since the index rose 8.3 percent in December 2014. In January, a 9.0-percent increase in Asian fares was the largest contributor to the advance. Despite the January rise, export air passenger fares fell 9.7 percent over the past year. The price index for export air freight rose 1.7 percent in January and declined 2.5 percent over the past 12 months.

Import and Export Price Index data for February 2016 are scheduled for release on Friday, March 11, 2016 at 8:30 a.m. (EST).