February 2020 U.S. Import and Export Price Indexes

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U.S. import prices declined 0.5 percent in February, the U.S. Bureau of Labor Statistics reported today, after ticking up 0.1 percent in January. In February, falling import fuel prices more than offset higher prices for nonfuel imports. Prices for U.S. exports decreased 1.1 percent in February, after advancing 0.6 percent the previous month.

Imports

Import prices declined 0.5 percent in February, after rising 0.1 percent in January and 0.2 percent in December. The decline in February was the largest decrease since the index fell 0.6 percent in August. Prices for U.S. imports decreased 1.2 percent from February 2019 to February 2020, as declining prices for both nonfuel and fuel imports contributed to the movement. (See table 1.)

Fuel Imports: Import fuel prices decreased 7.7 percent in February, the largest monthly decline since the index dropped 7.8 percent in June 2019. The February decrease was led by lower prices for petroleum, though falling prices for natural gas also contributed to the monthly decline. Petroleum prices fell 7.6 percent in February following no change in January and a 0.5-percent advance in December. The price index for natural gas declined 12.4 percent in February, after decreasing 13.2 percent in January. Import fuel prices fell 5.8 percent over the past 12 months, driven by a 5.5-percent drop in petroleum prices and a 13.9- percent decline in natural gas prices.

All Imports Excluding Fuel: The price index for nonfuel imports increased 0.3 percent in February, following rises of 0.2 percent and 0.1 percent in January and December, respectively. Higher prices for nonfuel industrial supplies and materials; foods, feeds, and beverages; and capital goods all contributed to the February advance. Despite the recent monthly increases, nonfuel import prices fell 0.7 percent over the 12-month period ended in February and have not increased on an over-the-year basis since rising 0.6 percent in December 2018.

Nonfuel Industrial Supplies and Materials: Import prices for nonfuel industrial supplies and materials rose 1.1 percent in February following an advance of 0.2 percent the previous month. The February advance was primarily driven by a 3.6-percent rise in unfinished metals prices and a 1.8-percent advance in building materials prices.

Finished Goods: Finished goods prices were mostly unchanged in February. Capital goods prices ticked up 0.1 percent for the second consecutive month in February. Prices for automotive vehicles and consumer goods were unchanged in February.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices advanced 1.5 percent in February, after rising 0.4 percent in January. Increases in prices for fruit, distilled alcoholic beverages, and vegetables drove the monthly advance.

Exports

U.S. export prices decreased 1.1 percent in February, the largest monthly decline since the index fell 1.1 percent in December 2015. In February, falling prices for both agricultural and nonagricultural exports contributed to the overall decrease. Prices for exports declined 1.3 percent on a 12-month basis in February, after rising 0.4 percent from January 2019 to January 2020. (See table 2.)

Agricultural Exports: The price index for agricultural exports declined 2.7 percent in February following an increase of 2.1 percent in January. Falling prices for vegetables, soybeans, and meat in February more than offset higher fruit prices. Prices for agricultural exports increased over the past 12 months, rising 0.2 percent from February 2019 to February 2020.

All Exports Excluding Agriculture: Nonagricultural export prices decreased 1.0 percent in February, after advancing 0.6 percent the previous month. In February, declining prices for nonagricultural industrial supplies and materials drove the decrease in nonagricultural export prices. The price index for nonagricultural exports declined 1.6 percent for the year ended in February.

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials declined 3.2 percent in February following a 0.8-percent increase the previous month. The February decrease was led by a 9.9-percent decline in fuel prices. Lower chemicals prices also contributed to the decline.

Finished Goods: Prices for each of the major finished goods categories were up in February. The export price index for capital goods rose 0.3 percent, led by higher prices for both electrical generating equipment and nonelectrical machinery. Prices for automotive vehicles increased 0.2 percent in February, driven by a 0.2-percent rise in automotive parts prices. In February, consumer goods prices increased 0.2 percent, the largest rise since the index advanced 0.3 percent in July. Higher prices for medicinal, dental, and pharmaceutical preparatory materials as well as home entertainment equipment drove the advance.

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 February, after no change in January. The February decline was the largest drop since the index fell 0.3 percent in January 2019. Prices for imports from China declined 1.5 percent over the past year. Import prices from Japan recorded no change in February, after ticking up 0.1 percent in January. The price index for imports from Canada fell 2.8 percent in February, the largest decrease since the index declined 4.4 percent in June 2019. The February drop was driven by lower fuel prices. Import prices from Canada fell 3.6 percent over the past 12 months, the largest over-the-year decline since the index decreased 9.1 percent for the year ended December 2018. In contrast, prices for imports from Mexico increased in February, ticking up 0.1 percent for the month. Import prices from the European Union recorded no change in February after the index rose 0.3 percent in January. (See table 7.)

Exports by Locality of Destination: Prices for exports to China decreased 0.9 percent in February, after rising 0.2 percent in January. The February decline was the largest 1-month drop since the index decreased 1.2 percent in August. An 8.2-percent decrease in prices for nonmanufacturing exports drove the February decline. The price index for exports to Japan fell 1.3 percent in February following no change in January and December. Prices for exports to Japan decreased 0.7 percent over the past 12 months. Export prices to Canada and Mexico both declined in February, falling 1.6 percent and 2.3 percent, respectively. The price index for exports to the European Union fell 1.0 percent in February, the largest monthly decrease since the index was 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 index for U.S. terms of trade with China declined 0.7 percent in February, the largest monthly drop since falling 1.0 percent in August. In February, falling export prices to China more than offset lower import prices from China. The index for U.S. terms of trade with Japan decreased 1.2 percent in February, the largest decrease since the index fell 1.4 percent in January 2019. The U.S. terms of trade with Canada advanced 1.2 percent and the U.S. terms of trade with Mexico decreased 2.4 percent in February. The U.S. terms of trade with the European Union decreased 1.0 percent in February, the largest monthly drop since the index was first published in December 2017. (See table 9.)

Import and Export Services

Imports: Import air passenger fares rose 0.2 percent in February following an 8.7-percent decrease in January. The February advance was led by higher Latin American/Caribbean and European fares. Import air passenger fares decreased 7.4 percent for the year ended in February. Import air freight prices declined 1.3 percent in February, after decreasing 2.3 percent in January. Despite the recent declines, prices for import air freight rose over the past year, advancing 0.3 percent. (See table 10.)

Exports: The index for export air passenger fares fell 9.3 percent in February, the largest decline since decreasing 11.6 percent in February 2017. The February decline was driven by a 13.9-percent decrease in Asian fares and a 13.0-percent drop in Latin American/Caribbean fares. Export air passenger fares decreased 2.6 percent over the past year. Prices for export air freight fell 1.4 percent in February, the largest 1-month decline since the index decreased 1.4 percent in September. Despite the decline in February, export air freight prices rose 0.4 percent over the past 12 months.

Import and Export Price Index data for March are scheduled for release on Tuesday, April 14, 2020 at 8:30 a.m. (EDT).