June 2018 U.S. Import and Export Price Indexes

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

(NOTE: A problem occurred with the calculation of the U.S. export air passenger fares indexes that were released with the June 14, 2018, release of the May U.S Import and Export Price Indexes. The corrected data have been issued with this news release.)

U.S. import prices decreased 0.4 percent in June, the U.S. Bureau of Labor Statistics reported today, following a 0.9-percent advance in May. Lower prices for nonfuel and fuel imports contributed to the June decline. Prices for U.S. exports rose 0.3 percent in June, after rising 0.6 percent the previous month.

Imports

All Imports: The price index for U.S. imports fell 0.4 percent in June, after increasing 0.9 percent in May and 0.5 percent in April. The June decline was the largest monthly drop since the index decreased 0.5 percent in February 2016. Despite the downturn in June, overall import prices advanced 4.3 percent between June 2017 and June 2018.

Fuel Imports: Import fuel prices decreased 0.7 percent in June, after a 6.1-percent advance in May and a 3.9-percent rise in April. Falling prices for both petroleum and natural gas contributed to the overall drop in June fuel prices. Prices for petroleum fell 0.8 percent in June following advances of 7.4 percent in May and 4.2 percent in April. Natural gas prices fell 6.0 percent in June, after a 24.7-percent drop the previous month. The price index for natural gas has not recorded a monthly increase since a 13.4-percent advance in January. Fuel prices rose 33.8 percent over the past 12 months, driven by a 37.8-percent increase in petroleum prices over the same period. In contrast, natural gas prices declined 27.8 percent over the past year, the largest 12-month drop since the index fell 34.8 percent for June 2016.

All Imports Excluding Fuel: Prices for nonfuel imports decreased 0.3 percent in June following a 0.2- percent increase in May. The June decline was led by lower prices for foods, feeds, and beverages; consumer goods; capital goods; and automotive vehicles which more than offset higher prices for nonfuel industrial supplies and materials. The price index for nonfuel imports advanced 1.5 percent for the year ended in June, driven by higher prices for nonfuel industrial supplies and materials; capital goods; and consumer goods.

Exports

All Exports: U.S. export prices increased 0.3 percent in June, after rising 0.6 percent the previous month. In June, higher nonagricultural prices more than offset decreasing prices for agricultural exports. Prices for overall exports advanced 5.3 percent over the past 12 months, the largest over-the-year increase since the index rose 6.3 percent in October 2011.

Agricultural Exports: Agricultural export prices fell 1.0 percent in June following a 1.6-percent increase in May and a 1.1-percent decrease in April. The largest contributors to the June decline were a 2.6-percent drop in soybeans prices and a 3.1-percent decrease in corn prices. A 6.4-percent rise in fruit prices partially mitigated the overall decrease in agricultural prices. Despite the declines in June and April, export agricultural prices increased 5.4 percent over the past 12 months.

All Exports Excluding Agriculture: The price index for nonagricultural exports increased 0.4 percent in June, after advancing 0.6 percent in May. Nonagricultural prices have not recorded a 1-month decline since the index edged down 0.1 percent in October 2017. In June, rising prices for nonagricultural industrial supplies and materials and capital goods more than offset lower consumer goods and automotive vehicles prices. Overall nonagricultural prices rose 5.4 percent over the past year, the largest 12-month advance for the index since prices increased 5.8 percent in October 2011.

SELECTED JUNE HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China recorded no change in June, after a 0.1-percent uptick the previous month. Prices for imports from China increased 0.5 percent over the past year, the largest 12-month advance for the index since a 0.6-percent rise between May 2013 and May 2014. In contrast, the price index for imports from Japan edged down 0.1 percent in June, the first monthly decline since the index fell 0.3 percent in October 2017. Import prices from the European Union, Canada, and Mexico all decreased in June, led in part by lower fuel prices. Prices for imports from the European Union and Canada decreased 0.3 percent, and the price index for imports from Mexico fell 0.5 percent.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices increased 0.3 percent in June following a 0.8-percent advance in May. Higher prices for metals and paper drove the June advance.

Finished Goods: Prices for each of the major finished goods areas decreased in June. Consumer goods prices fell 0.3 percent in June, the first monthly decline since the index decreased 0.1 percent in December 2017 and the largest 1-month drop since the index fell 0.3 percent in November 2016. The price indexes for import capital goods and automotive vehicles each declined 0.1 percent in June.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices fell 2.6 percent in June, the largest monthly decline for the index since a 2.8-percent drop in February 2012. Falling prices for vegetables, fruit, and fish and shellfish all contributed to the decrease in June.

Transportation Services: Import air passenger fares increased 7.3 percent in June, after decreasing 2.5 percent the previous month. The June rise was driven by a 7.9-percent advance in European fares and a 12.6-percent increase in Asian fares. The index for import air passenger fares advanced 4.8 percent over the past year. Prices for import air freight fell 1.0 percent in June and increased 17.1 percent over the past 12 months.

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials rose 1.3 percent in June following a 1.8-percent advance the previous month. Both increases were led by higher fuel prices which rose 3.2 percent in June and 5.1 percent in May.

Finished Goods: Export finished goods prices were mixed in June. Capital goods prices ticked up 0.1 percent for the second consecutive month in June and have not recorded a monthly decline since the index edged down 0.1 percent in October 2016. In contrast, the price indexes for export consumer goods and automotive vehicles declined 0.1 percent in June.

Transportation Services: Export air passenger fares rose 5.0 percent in June, after declining 0.7 percent in May and 3.7 percent in April. Higher European, Asian, and Latin American/Caribbean fares all contributed to the increase in June. Overall export air passenger fares rose 1.5 percent for the year ended in June. The price index for export air freight recorded no change in June and increased 1.4 percent over the past year.

Import and Export Price Index data for July are scheduled for release on Tuesday, August 14, 2018 at 8:30 a.m. (EDT).

New Locality of Destination and Terms of Trade Data

Beginning with the August news release on September 14, the BLS will introduce two new data series. Locality of Destination price indexes will measure export prices based on the country or region where items are exported. Terms of Trade indexes are based on the country or region and measure the relative price for imports in terms of export prices and are defined as the all-export price index divided by the respective all- import price index. For more information on Terms of Trade indexes, please see "U.S. Import and Export Prices and the Terms of Trade" at www.bls.gov/opub/btn/archive/us-import-and-export-price-indexes-and- the-terms-of-trade.pdf.

The Locality of Destination price indexes will be published at the all-export level and also include a breakdown by manufacturing industries and nonmanufacturing industries where possible. The countries and regions for which indexes will be published include the Industrialized Countries, the European Union, Latin America, the Pacific Rim, Canada, China, Germany, Japan, and Mexico. Indexes by manufacturing industries and nonmanufacturing industries will be available for all countries and regions except Canada and Germany.

Terms of Trade indexes will be available for all countries and regions where both the import Locality of Origin index and the export Locality of Destination index are published. These include the Industrialized Countries, the European Union, Latin America, the Pacific Rim, Canada, China, Germany, Japan, and Mexico.

The data series for both the Locality of Destination price indexes and the Terms of Trade indexes will begin in December 2017 when the indexes are first published on September 14.

In addition to the new indexes, the numbering of the tables in the Import and Export Price Index news release will be changing. Tables 1 through 7 will remain the same, and the new Locality of Destination data will be in table 8 and the new Terms of Trade data will be in table 9. The current table for Selected Transportation Services will change from table 8 to table 10. Other formatting changes to the text of the news release will be made. An example of the new format and tables will be provided before the September 14 release date.