March 2016 U.S. Import and Export Price Indexes

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U.S. import prices increased 0.2 percent in March, the U.S. Bureau of Labor Statistics reported today. The advance followed a 0.4-percent drop the previous month and was driven by an upturn in fuel prices which more than offset lower nonfuel prices. Prices for U.S. exports recorded no change in March, after falling 0.5 percent in February.

Imports

All Imports: The price index for U.S. imports rose 0.2 percent in March, the first monthly increase for the index since a 0.1-percent uptick in June 2015. The March advance was the largest 1-month rise since the index increased 1.1 percent in May 2015. Despite the upturn, overall import prices remained down over the past year, falling 6.2 percent from March 2015 to March 2016.

Fuel Imports: Import fuel prices increased 4.9 percent in March following declines of 5.9 percent in February, 15.7 percent in January, and 10.0 percent in December. The March advance was the first monthly increase since the index rose 1.5 percent in June 2015 and the largest advance since a 10.8-percent increase in May 2015. The March rise was led by a 6.5-percent advance in petroleum prices that more than offset a 16.1-percent drop in natural gas prices. Fuel prices decreased 38.3 percent over the past 12 months; a 39.5- percent decline in petroleum prices and a 37.7-percent fall in natural gas prices each contributed to the overall drop.

All Imports Excluding Fuel: Prices for nonfuel imports in March fell 0.1 percent for a third consecutive month. Nonfuel import prices have not recorded an increase since the index advanced 0.1 percent in July 2014. In March, falling prices for consumer goods; foods, feeds, and beverages; and capital goods more than countered rising prices for nonfuel industrial supplies and materials, and automotive vehicles. Nonfuel import prices declined 2.5 percent for the year ended in March.

Exports

All Exports: U.S. export prices recorded no change in March. This is the first time that the index did not decline since a 0.5-percent rise in May 2015. Prior to March, export prices decreased 0.5 percent in February, 0.8 percent in January, and 1.1 percent in December. In March, agricultural prices declined and the price index for nonagricultural exports advanced. Overall prices for U.S. exports decreased 6.1 percent over the past year.

Agricultural Exports: Prices for agricultural exports declined 2.5 percent in March, after rising 0.6 percent the previous month. The March decrease matched a 2.5-percent drop in August 2015; those were the largest 1-month declines since the index fell 3.1 percent in August 2014. The decrease in March was driven by lower prices for fruit, soybeans, corn, and nuts. Agricultural prices also fell over the past 12 months, declining 11.1 percent for the year ended in March.

All Exports Excluding Agriculture: The price index for nonagricultural exports rose 0.3 percent in March following a 0.5-percent decrease in February. The March advance was the first monthly increase for the index since a 0.6-percent rise in May 2015. In March, higher prices for nonagricultural industrial supplies and materials more than offset falling automotive vehicles prices. Despite the March upturn, nonagricultural export prices decreased 5.6 percent over the past 12 months.

SELECTED MARCH HIGHLIGHTS

Import Prices

Imports by Locality of Origin: In March, import prices from China declined 0.2 percent for the second consecutive month. The index has not recorded a monthly increase since ticking up 0.1 percent in December 2014 and declined 1.8 percent over the past year. That matched the largest 12-month drop since the index decreased 2.4 percent for the year ended November 2009. Prices for imports from the European Union also declined in March, edging down 0.1 percent. In contrast, the price index for imports from Japan rose 0.1 percent in March, after increasing 0.2 percent in February. Import prices from Canada and Mexico advanced 0.5 percent and 0.1 percent, respectively, led by an upturn in petroleum prices.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices advanced 0.5 percent in March, the first 1-month increase since the index rose 0.5 percent in July 2014 and the largest monthly advance since a 0.6-percent rise in March 2014. The March 2016 increase was led by a 3.2-percent increase in unfinished metals prices which more than offset lower chemical prices.

Finished Goods: Consumer goods prices fell 0.3 percent in March, after increasing 0.3 percent in February. The March decline was led by a 1.0-percent drop in the price index for medicinal, dental, and pharmaceutical materials. Prices for capital goods also decreased in March, edging down 0.1 percent. In contrast, automotive vehicles prices rose 0.1 percent, the first monthly advance for the index since a 0.1- percent increase in July 2015.

Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages declined 0.6 percent in March, following a 1.6-percent decrease the previous month. The March drop was driven by lower prices for vegetables, meat, and fruit.

Transportation Services: Import air passenger fares declined 5.4 percent in March, the largest monthly drop since the index fell 6.8 percent in January 2015. The March decrease was led by an 11.3-percent decline in European fares. The index for import air passenger fares fell 6.3 percent for the year ended in March. Import air freight prices decreased 0.1 percent in March and 12.6 percent over the past year.

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices rose 0.8 percent in March following a 2.2-percent decline the previous month. Higher metals prices in March drove the increase.

Finished Goods: Finished goods prices were mixed in March. The price index for automotive vehicles decreased 0.2 percent for the second consecutive month. In contrast, consumer goods prices ticked up 0.1 percent, the first 1-month increase since the index advanced 0.4 percent in June 2015. Prices for capital goods recorded no change in March.

Transportation Services: Export air passenger fares advanced 7.8 percent in March following a 13.5- percent drop the previous month. The March increase was the largest monthly rise since the index advanced 8.3 percent in December 2014. Despite the March rise, export air passenger fares fell 4.6 percent over the past year. Export air freight prices declined 3.0 percent in March and 1.8 percent over the past year.

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