August 2016 U.S. Import and Export Price Indexes

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U.S. import prices declined 0.2 percent in August, the U.S. Bureau of Labor Statistics reported today, after ticking up 0.1 percent in July. The August downturn was driven by lower fuel prices. Prices for U.S. exports decreased 0.8 percent in August following a 0.2-percent increase in July.

Imports

All Imports: Prices for U.S. imports fell 0.2 percent in August, the first monthly decrease since the index fell 0.5 percent in February. Over the 5 months previous to August, import prices advanced 3.1 percent. The August decline was led by falling fuel prices which decreased for the second consecutive month. The price index for U.S. imports decreased 2.2 percent for the year ended in August, after declining 11.4 percent over the previous 12-month period.

Fuel Imports: Fuel prices declined 2.1 percent in August following a 2.5-percent drop in July. The July decrease was the first monthly decline since the index fell 6.8 percent in February. Both the August and July decreases were driven by lower petroleum prices which fell 2.8 percent in August and 3.6 percent in July. In contrast, prices for natural gas increased 12.1 percent in August and 28.0 percent the previous month. Import fuel prices declined 12.2 percent between August 2015 and August 2016, and the price indexes for petroleum and natural gas each fell over the same period, 12.9 percent and 5.2 percent, respectively.

All Imports Excluding Fuel: Nonfuel prices recorded no change in August, after rising 0.3 percent in July. In August, higher prices for nonfuel industrial supplies and materials offset lower prices for automotive vehicles; foods, feeds, and beverages; and consumer goods. The price index for nonfuel imports decreased 0.9 percent over the past year, and falling prices for nonfuel industrial supplies and materials and each of the major finished goods categories all contributed to the decline.

Exports

All Exports: U.S. export prices decreased 0.8 percent in August, the first monthly drop since the index edged down 0.1 percent in March and the largest decline since the index fell 0.9 percent in January. In August, lower prices for both agricultural and nonagricultural exports contributed to the overall drop in export prices. The price index for U.S. exports decreased 2.4 percent over the past year, the smallest 12- month decline since the index fell 1.7 percent in November 2014.

Agricultural Exports: The price index for agricultural exports decreased 3.4 percent in August, the largest monthly drop since the index fell 4.2 percent in August 2013. The August 2016 decline was led by a 9.5- percent decrease in soybean prices, although falling prices for fruit, vegetables, corn, and meat also contributed to the overall drop. Agricultural prices fell 3.5 percent over the past 12 months.

All Exports Excluding Agriculture: Prices for nonagricultural exports decreased 0.4 percent in August, after rising 0.2 percent the previous month. The August decline in nonagricultural export prices was the first monthly drop since the index fell 0.6 percent in February. Lower prices for industrial supplies and materials, automotive vehicles, capital goods, and consumer goods all contributed to the August downturn. The price index for nonagricultural exports decreased 2.2 percent over the past 12 months, primarily driven by a 5.3- percent decline in nonagricultural industrial supplies and materials prices.

SELECTED AUGUST HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China declined 0.2 percent in August, led by a 1.0- percent drop in communications equipment manufacturing. Prices for imports from China have not recorded a monthly advance since the index rose 0.1 percent in December 2014; the index fell 1.9 percent over the past year. In August, import prices from Canada fell 0.9 percent; import prices from the European Union declined 0.3 percent; and import prices from Mexico decreased 0.2 percent. In contrast, the price index for imports from Japan increased 0.3 percent in August following a 0.2-percent advance the previous month. The August rise was the largest monthly increase since the index advanced 0.3 percent in August 2011, and the last time the index recorded a larger 1-month jump was a 0.5-percent increase in February 2011.

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials advanced 0.2 percent in August following a 1.6-percent increase the previous month. In August, a 1.4-percent rise in unfinished metals prices more than offset a 0.8-percent drop in chemicals prices.

Finished Goods: Finished goods prices were mostly down in August. Automotive vehicles prices fell 0.2 percent, driven by a 1.0-percent decline in the price index for engines and engine parts. Prices for consumer goods also fell in August, edging down 0.1 percent. Capital goods prices recorded no change in August as a 0.7-percent decrease in computer prices offset increases for non-computer capital goods prices.

Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages decreased 0.5 percent in August, after increasing 3.1 percent in July. The August downturn was led by a 15.4-percent drop in feedstuff and foodgrain prices.

Transportation Services: Import air passenger fares fell 6.0 percent in August, the largest monthly decline since the index decreased 6.8 percent in January 2015. The August drop was led by an 8.5-percent decline in European fares and a 7.2-percent decrease in Asian fares. The index for import air passenger fares fell 9.1 percent over the past 12 months. Import air freight prices rose 1.1 percent in August and declined 5.5 percent over the past year.

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials declined 1.3 percent in August, after rising 0.9 percent in July. The August downturn was led by a 4.3-percent decrease in fuel prices and a 1.1-percent drop in chemicals prices.

Finished Goods: Each of the major finished goods categories recorded monthly decreases in August. Prices for automotive vehicles fell 0.5 percent in August, the largest 1-month drop since the index was first published monthly in December 1988. A 1.2-percent decline in passenger car prices was the largest contributor to the August decrease. The price indexes for capital goods and for consumer goods each edged down 0.1 percent in August.

Transportation Services: Export air passenger prices advanced 3.6 percent in August following a 4.0- percent rise in July and a 3.4-percent increase in June. The August advance was driven by a 27.1-percent increase in Asian fares which more than offset a 10.2-percent drop in European fares. Despite the recent rises, export air passenger fares decreased 8.0 percent over the past year. The price index for export air freight ticked up 0.1 percent in August and decreased 2.6 percent over the past 12 months.

Import and Export Price Index data for September 2016 are scheduled for release on Thursday, October 13, 2016 at 8:30 a.m. (EDT).