October 2019 U.S. Import and Export Price Indexes

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U.S. import prices fell 0.5 percent in October, the U.S. Bureau of Labor Statistics reported today, following a 0.1-percent increase the previous month. The decrease in October was driven by lower petroleum prices, which declined 3.7 percent; prices for all imports excluding petroleum fell 0.1 percent. The price index for U.S. exports decreased 0.1 percent in October, after declining 0.2 percent in September.

Imports

Prices for U.S. imports decreased 0.5 percent in October, after rising 0.1 percent in September and declining 0.6 percent in August. The U.S. import price index declined 3.0 percent from October 2018 to October 2019. The 3.0-percent 12-month decrease was the largest over-the-year decline since the index fell 3.7 percent during the period ended July 2016. (See table 1.)

Fuel Imports: Import fuel prices declined 2.9 percent in October after increasing 1.5 percent the previous month. A 3.7-percent drop in petroleum prices drove the October decrease, more than offsetting a 32.0- percent increase in natural gas prices. Fuel prices declined 13.7 percent over the past year. Prices for import petroleum fell 14.7 percent for the year ended in October and natural gas prices declined 1.6 percent over the same period.

All Imports Excluding Fuel: Prices for nonfuel imports declined 0.2 percent in October following 2 consecutive monthly decreases. Falling prices for nonfuel industrial supplies and materials; foods, feeds, and beverages; consumer goods; and capital goods all contributed to the October decline. The price index for nonfuel imports declined 1.4 percent over the past 12 months, driven primarily by a 1.6-percent drop in capital goods prices and a 3.0-percent decrease in prices for nonfuel industrial supplies and materials.

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials decreased 0.9 percent in October, after increasing 0.5 percent in September. The drop in October was driven by a 2.2- percent decrease in prices for unfinished metals.

Finished Goods: Prices for imported finished goods mostly decreased in October. The price indexes for both consumer and capital goods declined 0.1 percent in October after each decreased 0.1 percent in September. The price index for automotive vehicles was unchanged in October after declining 0.1 percent the previous month.

Foods, Feeds, and Beverages: The price index for import foods, feeds, and beverages fell 0.4 percent in October following a 0.8-percent decrease in September. A 3.6-percent decrease in vegetable prices led the October decline.

Exports

The price index for U.S. exports decreased 0.1 percent in October following a 0.2-percent drop in September and a 0.6-percent decrease in August. Price decreases for nonagricultural exports in October offset increased prices for agricultural exports. Overall export prices declined 2.2 percent over the past year, the largest 12-month decrease in the index since a 2.4-percent drop in August 2016. (See table 2.)

Agricultural Exports: Agricultural export prices increased 1.9 percent in October, after falling 1.7 percent the previous month. A 4.9-percent increase in soybean prices drove the October advance. Agricultural export prices increased 2.2 percent from October 2018 to October 2019.

All Exports Excluding Agriculture: Prices for nonagricultural exports decreased 0.3 percent in October following a 0.1-percent drop in September and a 0.3-percent decline in August. Price declines for nonagricultural industrial supplies and materials, capital goods, and consumer goods led the October decrease. The price index for nonagricultural exports fell 2.7 percent during the 12 months ended in October, the largest over-the-year decline since a 3.0-percent drop in July 2016. Lower prices for nonagricultural industrial supplies and materials led the October 12-month drop.

Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies and materials decreased 0.6 percent in October following a 0.2-percent drop in September. The October decline was driven by lower prices for paper, chemicals, and nonferrous metals. Nonagricultural industrial supplies and materials prices fell 8.4 percent over the past year, the largest 12-month drop since a 9.8- percent decline in June 2016.

Finished Goods: Prices for export finished goods were mostly down in October. Capital goods prices fell 0.3 percent; consumer goods prices decreased 0.2 percent; and prices for automotive vehicles were unchanged. The October decline in capital goods prices was led by a 1.5-percent drop in the price index for computers, peripherals, and semiconductors. Consumer goods prices were driven down by lower prices for household goods.

Measures of Import and Export Prices by Locality

Imports by Locality of Origin: Prices for imports from China decreased 0.1 percent in October, after falling 0.1 percent in each of the 2 previous months; import prices from China have not increased on a monthly basis since advancing 0.1 percent in May 2018. The price index for imports from China declined 1.6 percent over the past year. Import prices from Japan edged up 0.1 percent in October following a decrease of 0.1 percent in September. Import prices from Japan increased 0.2 percent over the past 12 months. Prices for imports from the European Union decreased 0.1 percent in October, after increasing 0.1 percent the previous month. The price index for imports from Canada decreased 1.5 percent in October, the largest monthly decline since falling 4.4 percent in June 2019. Import prices from Canada rose 2.2 percent over the past year. Prices for imports from Mexico declined 0.3 percent in October following a 0.2-percent drop in September. (See table 7.)

Exports by Locality of Destination: Prices for exports to China declined 0.2 percent in October, after edging down 0.1 percent in September. Export prices to China fell 1.6 percent over the past year. Prices for exports to Japan rose 0.7 percent in October following a 0.3-percent increase the previous month. The price index for exports to Japan advanced 0.5 percent over the past year. Prices for exports to the European Union decreased 0.4 percent in October. Despite the October decline, export prices to the European Union rose 0.8 percent over the past 12 months. The price index for exports to Canada increased 0.2 percent in October and export prices to Mexico decreased 0.2 percent. (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 decreased 0.1 percent in October, after recording no change in September. In October, lower export prices to China more than offset price declines for imports from China. The index for U.S. terms of trade with China was unchanged from October 2018 to October 2019. U.S. terms of trade with Japan increased 0.5 percent in October following a 0.4-percent advance in September. The U.S. terms of trade with Japan rose 0.2 percent over the year ended in October. The index for U.S. terms of trade with the European Union decreased 0.3 percent in October, after declining 0.1 percent the previous month. The U.S terms of trade with Mexico ticked up 0.1 percent in October and decreased 1.3 percent over the past 12 months. U.S. terms of trade with Canada increased 1.7 percent in October and declined 2.6 percent over the past year. (See table 9.)

Import and Export Services

Imports: Import air passenger fares rose 3.4 percent in October following a 9.1-percent advance in September. Higher Asian fares drove the October increase. Import air passenger fares fell 4.9 percent over the 12 months ended in October. Import air freight prices increased 1.4 percent in October and fell 9.2 percent over the past year. (See table 10.)

Exports: The index for export air passenger fares declined 2.1 percent in October, after a 5.2-percent decrease the previous month. Lower Asian, Latin American/Caribbean, and European fares contributed to the October decline. Export air passenger fares fell 3.6 percent from October 2018 to October 2019. Export air freight prices increased 0.4 percent in October following a 1.4-percent drop in September. Prices for export air freight declined 1.5 percent over the past 12 months, the largest over-the-year decrease since a 2.9-percent drop in November 2018.

Import and Export Price Index data for November are scheduled for release on Friday, December 13, 2019 at 8:30 a.m. (EST).