May 2017 U.S. Import and Export Price Indexes

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U.S. import prices declined 0.3 percent in May, the U.S. Bureau of Labor Statistics reported today, after increasing 0.2 percent in April. Lower fuel prices drove the decrease in May and nonfuel prices recorded no change. The price index for U.S. exports declined 0.7 percent in May following a 0.2-percent advance in April.

Imports

All Imports: Import prices decreased 0.3 percent in May, the largest monthly drop since the index fell 0.5 percent in February 2016. The decline was driven by falling fuel prices, unlike last month when higher nonfuel prices more than offset decreasing fuel prices. The price index for U.S. imports rose 2.1 percent for the 12 months ended in May. The last over-the-year decline in import prices was a 0.2-percent decrease in October 2016.

Fuel Imports: Prices for fuel fell 3.7 percent in May following a 0.3-percent drop in April and a 3.1-percent decrease in March. The last time fuel prices fell by more than 3.7 percent was a 6.8-percent decline in February 2016. The May decrease was primarily led by a 3.9-percent drop in petroleum prices. Natural gas prices also declined, falling 2.9 percent. Despite the recent decreases, import fuel prices increased 16.9 percent between May 2016 and May 2017. The import price index for petroleum advanced 16.2 percent for the year ended in May and natural gas prices rose 44.1 percent.

All Imports Excluding Fuel: The nonfuel import price index recorded no change in May following a 0.8- percent advance over the previous 3 months. Lower prices for nonfuel industrial supplies and materials offset price increases for foods, feeds, and beverages, and automotive vehicles. Capital goods prices and prices for consumer goods recorded no change in May. Nonfuel prices advanced 0.8 percent over the past 12 months, continuing the trend of over-the-year increases since November when the index fell 0.2 percent. Rising prices for nonfuel industrial supplies and materials; foods, feeds, and beverages; and automotive vehicles more than offset lower prices for capital goods and consumer goods over the past year.

Exports

All Exports: The price index for overall exports fell 0.7 percent in May following increases of 0.2 percent in each of the previous 2 months. The May decrease was the first monthly drop since August 2016 when the index declined 0.8 percent. Prices for agricultural and nonagricultural exports contributed to the overall drop in export prices. The price index for U.S. exports rose 1.4 percent for the year ended in May.

Agricultural Exports: Prices for agricultural exports declined 1.6 percent in May, the first monthly decrease since a 0.2-percent drop in December. In May, decreasing prices for vegetables and fruit more than offset rising prices for soybeans, meat, wheat and corn. Prices for vegetable exports fell 24.9 percent in May, the largest monthly decline since February 1998 when the index fell 26.1 percent. Despite the May decline, agricultural export prices ticked up 0.1 percent over the past 12 months. Higher prices for vegetables, meats, and nuts all contributed to the rise in agricultural prices between May 2016 and May 2017.

All Exports Excluding Agriculture: Nonagricultural export prices decreased 0.6 percent in May, led by falling prices for nonagricultural industrial supplies and materials which more than offset higher prices for both capital goods and consumer goods. Export prices for automotive vehicles recorded no change in May. The price index for nonagricultural exports rose over the past year, increasing 1.5 percent.

SELECTED MAY HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China and Japan recorded no change in May following 0.1-percent declines in April and 0.2-percent increases in March. Prices for imports from China declined 1.1 percent for the year ended in May. In contrast, the price index for imports from Japan increased 1.2 percent over the past year. Import prices from Canada decreased 0.6 percent in May, after a 0.1-percent advance in April and a 1.1-percent drop in March. Prices for imports from Mexico rose 0.2 percent in May and last recorded a monthly decline when the index fell 1.2 percent in January. Prices for imports from the European Union recorded no change in May.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices decreased 0.5 percent in May, the first monthly decline since the index fell 0.6 percent in October. The drop was driven by falling prices for unfinished metals.

Finished Goods: Prices for the major finished goods categories were mixed. Automotive vehicles prices rose 0.1 percent in May, driven by a 0.3-percent advance in non-engine parts. Both capital goods and consumer goods prices recorded no change in May.

Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages rose 1.2 percent in May, after a 0.5- percent increase in April. A 3.1-percent advance in fruit prices, a 2.5-percent rise in meat prices, and a 3.2- percent increase in vegetables prices all contributed to the monthly advance.

Transportation Services: Import air passenger fares rose 3.9 percent in May, driven by a 3.7-percent advance in European fares and a 6.2-percent increase in Asian fares. Despite the monthly increase, import air passenger fares fell 6.9 percent over the past 12 months. Import air freight prices rose 0.7 percent for the second consecutive month in May and 9.7 percent over the past year.

Export Prices

Nonagricultural Industrial Supplies and Materials: The export price index for nonagricultural industrial supplies and materials fell 1.9 percent in May following a 0.4-percent rise in April and a 0.1-percent decline in March. Despite the monthly decrease, prices for nonagricultural industrial supplies and materials increased 4.7 percent for the year ended in May and have not recorded a 12-month decline since October.

Finished Goods: Export prices for finished goods either increased or recorded no change in May. Export capital goods prices ticked up 0.1 percent, driven by a 0.4-percent advance in computers, peripherals, and semiconductors prices. The price index for export consumer goods rose 0.1 percent. Prices for automotive vehicles recorded no change in May, after a 0.2-percent rise in April.

Transportation Services: Export air passenger fares increased 3.0 percent in May, after a 5.7-percent drop in April and a 3.0-percent advance in March. Asian and European fares contributed to the increase in May, rising 10.5 percent and 5.1 percent, respectively. The export air passenger fares index advanced 2.2 percent for the year ended in May. Export air freight prices increased 1.3 percent in May and rose 4.2 percent between May 2016 and May 2017.

Import and Export Price Index data for June 2017 are scheduled for release on Tuesday, July 18, 2017 at 8:30 a.m. (EDT).