March 2017 U.S. Import and Export Price Indexes

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U.S. import prices declined 0.2 percent in March, the U.S. Bureau of Labor Statistics reported today, following increases in each of the 3 previous months. The March downturn was driven by lower fuel import prices which more than offset rising nonfuel prices. In contrast, the price index for U.S. exports increased 0.2 percent in March, after advancing 0.3 percent in February.

Imports

All Imports: Import prices fell 0.2 percent in March, after increasing 1.4 percent over the previous 3 months. Prior to the March downturn, import prices trended up over most of the past 12 months, advancing 4.2 percent between March 2016 and March 2017. In contrast, import prices fell 6.1 percent for the previous 12-month period.

Fuel Imports: The price index for import fuel declined 3.8 percent in March, the largest 1-month drop since the index fell 6.8 percent in February 2016. In March, a 3.6-percent decrease in petroleum prices and an 11.0-percent decline in natural gas prices contributed to the overall fall in fuel prices. The March decrease in petroleum prices was the largest monthly decline since the index fell 4.1 percent in August, and the drop in natural gas prices was the largest 1-month decrease since the index declined 20.0 percent in March 2016. Despite the March downturn, the price index for import fuel increased 50.2 percent over the past year, after declining 36.7 percent the previous 12 months. The March 2017 over-the-year increase was driven by a 52.1-percent advance in petroleum prices and a 53.8-percent rise in natural gas prices.

All Imports Excluding Fuel: In contrast to fuel prices, prices for nonfuel imports increased in March, rising 0.2 percent. The advance followed a 0.4-percent rise in February and was led by higher prices for nonfuel industrial supplies and materials and capital goods. Those increases more than offset falling prices for consumer goods and foods, feeds, and beverages. The price index for nonfuel imports advanced 1.0 percent over the past 12 months, the largest over-the-year advance since the index increased 1.3 percent in April 2012. The increase from March 2016 to March 2017 was driven by higher prices for nonfuel industrial supplies and materials and foods, feeds, and beverages, which more than offset 12-month declines for each of the major finished goods categories.

Exports

All Exports: Prices for U.S. exports rose 0.2 percent in March, continuing an upward trend since the index last fell on a monthly basis in August. Higher prices for agricultural exports and nonagricultural exports each contributed to the advance in March. U.S. export prices also increased over the past year, rising 3.6 percent for the year ended in March. That matched the 12-month advance recorded in December 2011 and was the largest over-the-year increase since the index rose 4.8 percent in November 2011.

Agricultural Exports: Export agricultural prices increased 0.9 percent in March, after rising 1.5 percent in February. The March advance was led by a 4.4-percent increase in meat prices and a 4.9-percent rise in nut prices. Prices for agricultural exports advanced 5.3 percent for the year ended in March, the largest 12- month increase since the index rose 9.6 percent in June 2013. Higher soybean prices over the past year were the biggest contributor to the March 12-month rise in agricultural export prices.

All Exports Excluding Agriculture: The price index for nonagricultural exports rose 0.2 percent in March following a 0.3-percent advance the previous month. In March, higher prices for nonagricultural industrial supplies and materials, consumer goods, capital goods, and nonagricultural foods all contributed to the overall advance in nonagricultural prices. Prices for nonagricultural exports rose 3.3 percent over the past year, matching the 12-month increase in February; those were the largest over-the-year advances since the index rose 4.0 percent in December 2011.

SELECTED MARCH HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China increased 0.2 percent in March, after ticking up 0.1 percent the previous month. The February uptick was the first monthly rise since the index increased 0.1 percent in December 2014, and the March advance was the largest rise since the index increased 0.3 percent in May 2014. Despite the recent advances, prices for imports from China fell 1.2 percent over the past 12 months. The price index for imports from Japan increased 0.2 percent in March and rose 1.4 percent over the past year. Import prices from Mexico and the European Union also advanced in March, rising 0.4 percent and 0.1 percent, respectively. In contrast, prices for imports from Canada declined 1.3 percent, led by lower fuel prices.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices rose 1.6 percent in March following a 1.5-percent increase in February. Both monthly advances were driven by higher prices for metals and chemicals.

Finished Goods: Finished goods prices were mixed in March. The price index for consumer goods declined 0.2 percent, after rising 0.3 percent in February and 0.4 percent in January. In contrast, capital goods prices ticked up 0.1 percent following a 0.2-percent advance the previous month. Prices for import automotive vehicles recorded no change for the second consecutive month in March.

Foods, Feeds, and Beverages: The price index for import foods, feeds, and beverages declined 0.7 percent in March, after rising 1.0 percent the previous month. In March, the decrease was led by lower prices for food oils, fruits, and vegetables.

Transportation Services: Import air passenger fares decreased 4.0 percent in March, the largest monthly decline since a 6.0-percent drop in August. The March decrease was driven by an 8.6-percent decline in European fares. The index for import air passenger fares fell 2.7 percent for the year ended in March, led by a 5.9-percent drop in European fares. Prices for import air freight rose 0.6 percent in March and 7.6 percent over the past 12 months.

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices advanced 0.3 percent for the second consecutive month in March. The March increase was driven by rising prices for nonferrous metals and chemicals.

Finished Goods: Finished goods prices increased overall in March. Consumer goods prices advanced 0.3 percent, the largest rise since a 0.5-percent advance in July 2016. Despite the increase in March, export consumer goods prices fell 2.2 percent over the past year. Prices for capital goods rose 0.1 percent following 0.2-percent increases in each of the past 3 months. The price index for export automotive vehicles recorded no change in March.

Transportation Services: Export air passenger fares increased 4.3 percent in March following an 11.6- percent decline in February. Higher Latin American/Caribbean, Asian, and European fares all contributed to the March advance in export air passenger fares. The index for export air passenger fares fell 0.3 percent for the year ended in March. Export air freight prices increased 1.9 percent in March and 3.7 percent over the past year.

Import and Export Price Index data for April 2017 are scheduled for release on Wednesday, May 10, 2017 at 8:30 a.m. (EDT).