February 2016 U.S. Import and Export Price Indexes

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U.S. import prices fell 0.3 percent in February following a 1.0-percent drop in January, the U.S. Bureau of Labor Statistics reported today. The February decrease was mostly led by declining fuel prices. The price index for U.S. exports decreased 0.4 percent in February, after falling 0.8 percent the previous month.

Imports

All Imports: U.S. import prices fell 0.3 percent in February and have not recorded a monthly advance since the index ticked up 0.1 percent in June 2015. The February decrease followed declines of 1.0 percent in January and 1.2 percent in December. The price index for overall imports decreased 6.1 percent between February 2015 and February 2016. Despite the downward trend over the past 8 months, the 12-month drop recorded in February was the smallest over-the-year decline since the index fell 5.6 percent for the year ended in December 2014.

Fuel Imports: Prices for import fuel declined 3.9 percent in February, after decreasing 21.9 percent over the previous 2 months. Fuel prices also have not recorded a monthly advance since June 2015 when the index rose 1.5 percent. Both petroleum and natural gas prices contributed to the February drop, falling 4.0 percent and 6.3 percent, respectively. Prices for fuel declined 37.3 percent over the past year. A 38.5-percent decrease in petroleum prices over the period was the largest factor for the overall drop, although natural gas prices also fell for the year ended in February, declining 36.4 percent.

All Imports Excluding Fuel: The price index for nonfuel imports edged down 0.1 percent in February, after recording no change the previous month. In February, lower prices for foods, feeds, and beverages; automotive vehicles; and nonfuel industrial supplies and materials more than offset rising consumer goods prices. Nonfuel import prices have not recorded a monthly increase since a 0.1-percent advance in July 2014 and declined 2.7 percent over the past 12 months.

Exports

All Exports: Overall export prices decreased 0.4 percent in February as declining nonagricultural prices more than offset rising agricultural prices. The February decline followed decreases of 0.8 percent in January and 1.1 percent in December. The price index for overall exports has not recorded a 1-month increase since the index advanced 0.5 percent in May 2015. Export prices fell 6.0 percent over the past year.

All Exports Excluding Agriculture: The price index for nonagricultural exports declined 0.4 percent in February, after decreasing 2.0 percent over the 2 previous months. In February, falling nonagricultural industrial supplies and materials prices drove the overall decline in nonagricultural prices, although lower prices for automotive vehicles and consumer goods also declined. In contrast, capital goods prices increased. Prices for nonagricultural exports decreased 5.6 percent for the year ended in February.

Agricultural Exports: Prices for agricultural exports rose 0.6 percent in February, the first monthly advance since the index ticked up 0.1 percent in October 2015. The February increase was driven by a 6.8- percent rise in fruit prices, a 3.1-percent advance in meat prices, and a 4.4-percent increase in corn prices. Despite the February advance, agricultural prices fell 10.4 percent over the past 12 months led by lower prices for meat, nuts, and soybeans over that period.

SELECTED FEBRUARY HIGHLIGHTS

Import Prices

Imports by Locality of Origin: In February, prices for imports from China edged down 0.1 percent for the third consecutive month and have not recorded a monthly advance since the index increased 0.1 percent in December 2014. Import prices from China declined 1.6 percent over the past year. Led by lower fuel prices, prices for imports from Canada, the European Union, and Mexico also fell in February, declining 0.8 percent, 0.5 percent, and 0.9 percent, respectively. The 0.5-percent decrease for import prices from the European Union was the largest monthly drop since the index fell 1.1 percent in September 2015, and the 0.9-percent decline for import prices from Mexico was the largest 1-month decrease since the index dropped 1.3 percent in August 2015. In contrast, the price index for imports from Japan rose 0.1 percent in February.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices edged down 0.1 percent, led by lower prices for chemicals and building materials. The price index for nonfuel industrial supplies and materials has not recorded a 1-month increase since the index rose 0.5 percent in July 2014.

Finished Goods: Consumer goods prices rose 0.3 percent in February, after advancing 0.4 percent in January. Both monthly increases were driven by higher prices for medicinal, dental, and pharmaceutical prices which rose 2.0 percent in February and 2.2 percent in January. In contrast, automotive vehicle prices fell 0.1 percent. In February, the price index for capital goods was unchanged from the previous month.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices decreased 2.0 percent in February as a 20.0-percent drop in vegetable prices more than offset an 8.3-percent rise in meat prices.

Transportation Services: Import air passenger fares declined 1.5 percent in February, following a 1.0- percent drop in January and a 0.6-percent decrease in December. In February, a 6.7-percent decline in Asian fares led the overall drop. Import air passenger fares decreased 3.3 percent for the year ended in February. The price index for import air freight fell 1.8 percent in February, after recording declines of 4.6 percent in January and 2.8 percent in December. Import air freight prices decreased 9.5 percent over the past year.

Export Prices

Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies and materials decreased 2.1 percent in February and 15.2 percent over the past 12 months. Both declines were driven by lower fuel prices which declined 6.1 percent in February and 33.0 percent between February 2015 and February 2016.

Finished Goods: The major export finished goods categories were mixed in February. Capital goods prices rose 0.3 percent, led by a 4.2-percent increase in prices for civilian aircraft engines. The last monthly increase for capital goods prices larger than 0.3 percent was a 0.7-percent advance in January 2013. In contrast, prices for automotive vehicles fell 0.2 percent, and consumer goods prices edged down 0.1 percent.

Transportation Services: Export air passenger fares decreased 14.3 percent in February, driven by a 16.4- percent drop in Asian fares and a 15.9-percent decline in Latin American/Caribbean fares. The February decrease was the largest monthly drop since the index was first published monthly in December 2000. Export air passenger fares fell 11.8 percent over the past year. Prices for export air freight recorded no change in February and decreased 0.4 percent over the past year.

Import and Export Price Index data for March 2016 are scheduled for release on Tuesday, April 12, 2016 at 8:30 a.m. (EDT).