November 2018 U.S. Import and Export Price Indexes

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U.S. import prices declined 1.6 percent in November, the U.S. Bureau of Labor Statistics reported today, following a 0.5-percent rise the previous month. The November drop was primarily led by lower fuel prices. The price index for U.S. exports fell 0.9 percent in November, after advancing 0.5 percent in October.

Imports

Prices for U.S. imports decreased 1.6 percent in November, the largest monthly decline since a 1.8-percent drop in August 2015. Despite the November drop, import prices increased 0.7 percent over the past 12 months, the smallest over-the-year advance since the index increased 0.2 percent from November 2015 to November 2016. (See table 1.)

Fuel Imports: Import fuel prices decreased 11.0 percent in November following a 3.2-percent rise the previous month. The November drop was the largest 1-month decline since the index fell 15.6 percent in January 2016. A 12.1-percent decrease in petroleum prices led the November decline in fuel prices and was the largest monthly drop since petroleum prices fell 17.2 percent in January 2016. The November decline in petroleum prices more than offset a 12.8-percent advance in natural gas prices that followed a 22.3-percent increase for that index in October. Despite the decrease in November, fuel prices rose 4.6 percent over the past year. The price index for petroleum increased 4.4 percent for the year ended in November, and natural gas prices advanced 11.6 percent over the same period.

All Imports Excluding Fuel: Prices for nonfuel imports fell 0.3 percent in November, after ticking up 0.1 percent in October. Lower foods, feeds, and beverages prices were the largest factor for the November decline in nonfuel prices, although prices for nonfuel industrial supplies and materials and capital goods also decreased. The price index for nonfuel imports increased 0.3 percent over the past 12 months, driven by higher prices for nonfuel industrial supplies and materials; consumer goods; and automotive vehicles.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 0.4 percent in November, after recording no change the previous month. The decline was led by a 0.7-percent drop in unfinished metals prices and a 1.4-percent drop in prices for selected building materials.

Finished Goods: Finished goods prices recorded little movement in November. The price index for capital goods edged down 0.1 percent and prices for consumer goods and automotive vehicles each recorded no change.

Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages declined 2.2 percent in November following advances of 2.2 percent in October and 2.0 percent in September. The November downturn was led by a 10.8-percent drop in fruit prices.

Exports

Prices for U.S. exports declined 0.9 percent in November, the largest 1-month decrease since the index fell 0.9 percent in January 2016 and 1.1 percent in December 2015. Lower nonagricultural prices in November more than offset rising agricultural prices. Despite the November decline, U.S. export prices increased 1.8 percent over the past year. (See table 2.)

Agricultural Exports: The price index for agricultural exports rose 1.8 percent in November, after falling 0.2 percent in October and 1.2 percent in September. The November advance was the largest increase since the index rose 3.2 percent in March. Higher prices for fruit, soybeans, and corn all contributed to the November increase in agricultural prices. Despite the November increase, agricultural export prices declined 1.7 percent from November 2017 to November 2018. A 10.7-percent drop in soybeans prices and a 12.3- percent decline in nut prices over the past year were the primary factors for the decrease in overall agricultural prices.

All Exports Excluding Agriculture: Nonagricultural export prices fell 1.0 percent in November following a 0.5-percent increase the previous month and a 0.2-percent advance in September. The November drop was the largest monthly decrease since the index declined 1.1 percent in December 2015. Lower nonagricultural industrial supplies and materials prices led the November decrease in nonagricultural export prices, with falling prices for consumer goods and automotive vehicles also contributing to the decline. Despite the decline in November, prices for nonagricultural exports increased 2.2 percent over the past 12 months.

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials decreased 3.1 percent in November, the largest 1-month decline since the index fell 3.1 percent in December 2015. The November drop was driven by an 8.6-percent decrease in export fuel prices.

Finished Goods: Finished goods prices were mostly down in November. The price indexes for consumer goods and automotive vehicles each edged down 0.1 percent. Prices for capital goods recorded no change in November and in each of the previous 2 months, though the index rose 1.5 percent for the year ended in November and has not fallen on a monthly basis since a 0.1-percent decline in October 2016.

Measures of Import and Export Prices by Locality

Imports by Locality of Origin: The price index for imports from China edged down 0.1 percent in November, after falling 0.3 percent the previous month. A decrease in the computer and electronic product manufacturing price index was a primary contributor to both the November and October declines. Prices for imports from China have not recorded a monthly rise since ticking up 0.1 percent in May and fell 0.3 percent for the year ended in November. Import prices from Japan decreased 0.1 percent in November following a 0.1-percent increase in October. The price index for imports from Japan rose 1.2 percent over the past year. In November, prices for imports from Canada declined 3.4 percent, from Mexico 1.4 percent, and from the European Union 0.5 percent. Lower petroleum prices in November contributed to the declines in each of the indexes. (See table 7.)

Exports by Locality of Destination: Prices for exports to China edged down 0.1 percent in November following a 0.8-percent advance in October and a 1.7-percent decline in September. The price index for exports to Japan recorded no change in November, after a 0.2-percent advance and a 0.3-percent decrease in the previous 2 months. Export prices to Canada rose 0.3 percent in November. The price index for exports to Canada has not recorded a monthly decline since July. Prices for exports to the European Union fell 0.4 percent in November, after rising 0.4 percent in October. Export prices to Mexico decreased 1.3 percent in November following a 1.1-percent increase the previous month. The November declines for the price indexes for exports to the European Union and Mexico were both the largest 1-month drops since the indexes were first published in December 2017. (See table 8.)

Terms of Trade Indexes: Terms of Trade indexes are based on country, region, or grouping and measure the change in the purchasing power of exports relative to imports. The U.S. terms of trade with China recorded no change in November as both export prices to China and import prices from China fell 0.1 percent for the month. The index for U.S. terms of trade with Japan ticked up 0.1 percent for the second consecutive month, after edging down 0.1 percent in September. The U.S. terms of trade with Canada rose 3.9 percent in November, the largest 1-month change since the index was first published in December 2017. The indexes for U.S. terms of trade with the European Union and Mexico rose 0.2 percent and 0.1 percent, respectively. (See table 9.)

Import and Export Services

Imports: Import air passenger fares advanced 0.7 percent for the second consecutive month in November. Those increases followed a 10.7-percent increase in September. Higher European and Latin American/Caribbean fares each contributed to the November rise. The index for import air passenger fares also advanced 0.7 percent over the past 12 months. Import air freight prices rose 1.2 percent in November, after increasing 2.4 percent the previous month. Prices for import air freight advanced 4.7 percent over the past year. (See table 10.)

Exports: The index for export air passenger fares ticked up 0.1 percent in November, after falling 8.0 percent for the 3 months ended in October. Export air passenger fares fell 3.3 percent over the past year, matching the largest 12-month decline since a 5.8-percent drop in December 2017. Export air freight prices declined 0.3 percent in November, the largest 1-month decrease since the index fell 6.2 percent in December 2017. Prices for export air freight declined 3.1 percent for the year ended in November.

Import and Export Price Index data for December are scheduled for release on Wednesday, January 16, 2019 at 8:30 a.m. (EST).