January 2020 U.S. Import and Export Price Indexes

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U.S. import prices were unchanged in January, the U.S. Bureau of Labor Statistics reported today, following 0.2-percent advances the 2 previous months. In January, falling fuel prices offset increasing prices for nonfuel imports. Prices for U.S. exports advanced 0.7 percent in January, after declining 0.2 percent the previous month.

Imports

Import prices were unchanged in January, after rising in December and November. Prices for U.S. imports rose 0.3 percent from January 2019 to January 2020. The price index for overall imports advanced on a 12- month basis for the second consecutive month, after not recording an over-the-year increase since the index rose 0.1 percent for the year ended March 2019. (See table 1.)

Fuel Imports: Prices for import fuel declined 2.2 percent in January, led by lower prices for both petroleum and natural gas. The January decrease was the largest monthly drop since the index fell 4.2 percent in August. Petroleum prices fell 1.7 percent in January following a 1.0-percent increase in December and a 0.9-percent advance in November. The price index for natural gas declined 11.7 percent in January, after rising 141.3 percent over the previous 5 months. Despite the decline in January, import fuel prices increased 11.3 percent over the past 12 months, driven by an 11.3-percent advance in petroleum prices and a 15.7- percent rise in natural gas prices.

All Imports Excluding Fuel: The price index for nonfuel imports increased 0.2 percent for the second consecutive month in January. Prior to December, the most recent advance in the index occurred in February 2019 when the index ticked up 0.1 percent. Higher prices for finished goods; nonfuel industrial supplies and materials; and foods, feeds, and beverages all contributed to the January advance. Despite the recent increases, nonfuel import prices fell 0.9 percent over the past year and have not increased on an over- the-year basis since December 2018.

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials rose 0.3 percent in January following no change the previous month. The January advance was primarily driven by a 2.2-percent rise in unfinished metals prices.

Finished Goods: Finished goods prices increased in January. Automotive vehicles prices advanced 0.5 percent in January, led by rising prices for passenger cars. The increase in automotive vehicles prices was the largest monthly gain since the index rose 0.5 percent in January 2018. The price indexes for capital goods and consumer goods both ticked up 0.1 percent for the second consecutive month in January.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices advanced 0.5 percent in January, after rising 1.1 percent in December. Higher prices for fish and shellfish more than offset declining meat prices.

Exports

U.S. export prices rose 0.7 percent in January, the largest monthly advance since the index increased 0.7 percent in March. In January, rising prices for both agricultural and nonagricultural exports contributed to the overall increase. Prices for exports also advanced on a 12-month basis, increasing 0.5 percent in January. The rise in January was the first 12-month advance since the index increased 0.2 percent for the year ended in April. (See table 2.)

Agricultural Exports: The price index for agricultural exports advanced 2.0 percent in January following a decrease of 0.1 percent in December and increases of 2.4 percent in November and 1.7 percent in October. Rising prices for vegetables, soybeans, wheat, and corn in January more than offset lower prices for fruit, meat, and nuts. Prices for agricultural exports also advanced over the past 12 months, rising 3.1 percent from January 2019 to January 2020.

All Exports Excluding Agriculture: Nonagricultural export prices increased 0.7 percent in January, after falling 0.2 percent the previous month. In January, advancing prices for nonagricultural industrial supplies and materials; finished goods; and nonagricultural foods all contributed to the increase in nonagricultural export prices. The price index for nonagricultural exports advanced 0.2 percent for the year ended in January, the first 12-month increase since rising 0.5 percent in April.

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials advanced 1.1 percent in January following a 0.5-percent drop the previous month. The January increase was led by a 1.5-percent rise in fuel prices, a 3.0-percent advance in nonferrous metals prices, and a 0.6-percent increase in chemicals prices.

Finished Goods: Finished goods prices were mostly up in January. The price index for export capital goods rose 0.4 percent, as higher prices for capital goods excluding computers more than offset lower prices for computers, peripherals, and semiconductors. Prices for automotive vehicles increased 0.5 percent in January, driven by advancing prices for engines and nonengine parts and accessories. The January increase for capital goods prices was the largest advance since January 2019 and the rise in automotive vehicles prices was the largest 1-month increase since February 2019. Consumer goods prices were unchanged in January.

Measures of Import and Export Prices by Locality

Imports by Locality of Origin: The price index for imports from China declined 0.2 percent in January, after no change in December. The January decline was the largest drop since September and the index has not risen on a monthly basis since May 2018. Prices for imports from China declined 1.7 percent over the past year. In contrast, import prices from Japan rose 0.2 percent in January, the largest monthly increase since August. The January advance was led by higher prices for machinery manufacturing. The price index for imports from Canada fell 0.8 percent in January, driven by lower fuel prices. Prices for imports from Mexico also decreased in January, falling 0.2 percent following a 0.4-percent increase the previous month. Import prices from the European Union rose 0.4 percent in January, the largest monthly advance since the index increased 0.6 percent in April 2018. (See table 7.)

Exports by Locality of Destination: Prices for exports to China increased 0.3 percent in January, after ticking up 0.1 percent in each of the 2 previous months. The January rise was the largest 1-month advance since the index increased 0.6 percent in July. Despite the recent advances, export prices to China fell 0.2 percent from January 2019 to January 2020. The price index for exports to Japan rose 0.1 percent in January following no change in December. Prices for exports to Japan increased 1.8 percent over the past 12 months. Export prices to Canada and Mexico both advanced in January, rising 0.6 percent and 1.1 percent, respectively. The price index for exports to the European Union rose 0.7 percent in January, the largest monthly increase since July. (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 index for the U.S. terms of trade with China advanced 0.5 percent in January, the largest 1-month rise since July. Lower import prices from China and higher export prices to China each contributed to the January increase. The index for U.S. terms of trade with Japan edged down 0.1 percent in January as rising import prices from Japan more than offset higher export prices to Japan. The U.S. terms of trade with Canada and the U.S. terms of trade with Mexico each advanced 1.3 percent in January. The index for the U.S. terms of trade with the European Union also increased in January, rising 0.3 percent, the first monthly advance for the index since a 0.6-percent increase in July. (See table 9.)

Import and Export Services

Imports: Import air passenger fares fell 8.8 percent in January following a 12.3-percent advance for the fourth quarter of 2019. The January drop was led by lower Asian and Latin American/Caribbean fares. Import air passenger fares decreased 9.6 percent for the year ended in January, the largest 12-month drop since April. Import air freight prices declined 2.4 percent in January, the first monthly decrease since September. Prices for import air freight also fell over the past year, declining 4.6 percent. (See table 10.)

Exports: The index for export air passenger fares rose 8.4 percent in January, after declining 0.7 percent in December. The January advance was driven by a 17.4-percent increase in Asian fares, and was the largest rise in overall export air passenger fares since December 2013. Despite the January advance, export air passenger fares decreased 1.2 percent over the past year. Prices for export air freight rose 2.7 percent in January, the largest 1-month advance since the index increased 5.4 percent in October 2017. The January rise led export air freight prices up 2.2 percent over the past 12 months.

Import and Export Price Index data for February are scheduled for release on Friday, March 13, 2020 at 8:30 a.m. (EDT).