May 2020 U.S. Import and Export Price Indexes

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Prices for U.S. imports increased 1.0 percent in May, the U.S. Bureau of Labor Statistics reported today, after declining 2.6 percent in April and 2.4 percent in March. The May advance was led by higher fuel prices. The price index for U.S. exports rose 0.5 percent in May following a 3.3-percent drop the previous month.

Coronavirus (COVID-19) Pandemic Impact on May 2020 Import and Export Price Index Data

The Bureau of Labor Statistics did not make any changes to either the collection method or estimation methodology for the May release of U.S. Import and Export Price Indexes. Survey response rates for May were 4.5 percentage points lower than those in May 2019. A small number of indexes that are normally published were not published in May. Additional information is available at www.bls.gov/covid19/import- export-price-indexes-covid19-impacts-may-2020.htm.

Imports

Prices for U.S. imports rose 1.0 percent in May, the largest 1-month advance since the index increased 1.0 percent in February 2019. In May, the advance was driven by higher fuel prices; nonfuel prices also increased. Despite the May increase, the price index for U.S. imports decreased 6.0 percent from May 2019 to May 2020. (See table 1.)

Fuel Imports: Import prices for fuel increased 20.5 percent in May following declines of 31.0 percent, 26.6 percent, and 9.1 percent the previous 3 months. The May advance was the largest rise since the index was first published monthly in September 1992. A 21.7-percent increase in petroleum prices led the overall advance in fuel prices; a 7.2-percent rise in natural gas prices also contributed to the increase. Prices for petroleum and natural gas both decreased the previous month, falling 32.6 percent and 3.1 percent, respectively. Despite the record advance in May, import fuel prices declined 49.6 percent over the past 12 months. Prices for petroleum also fell for the year ended in May, declining 51.5 percent. In contrast, natural gas prices advanced 15.8 percent over the same period.

All Imports Excluding Fuel: Import prices excluding fuel ticked up 0.1 percent in May following a 0.5- percent drop the previous month. In May, rising prices for foods, feeds, and beverages and consumer goods more than offset declining prices for nonfuel industrial supplies and materials and automotive vehicles. The price index for imports excluding fuels decreased 0.7 percent over the past 12 months.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 0.8 percent in May, after decreasing 3.3 percent in April. The May decline was led by 1.6-percent drops in unfinished metals prices and chemicals prices.

Finished Goods: Finished goods prices were mixed in May. Consumer goods prices ticked up 0.1 percent, after edging down 0.1 percent in April. Prices for automotive vehicles fell 0.1 percent following a 0.4- percent advance in April. The price index for capital goods was unchanged in May, after rising 0.2 percent the previous month.

Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages rose 2.2 percent in May following a 1.6-percent decline in April. The May rise was driven by higher prices for vegetables, meat, and fruit.

Exports

U.S. export prices increased 0.5 percent in May, after falling 3.3 percent in April, 1.4 percent in March, and 1.2 percent in February. Higher nonagricultural prices in May more than offset lower prices for agricultural exports. Despite the May advance, the price index for U.S. exports declined 6.0 percent over the past 12 months. (See table 2.)

Agricultural Exports: The price index for agricultural exports declined 0.5 percent in May following a 3.1- percent drop in April. In May, lower prices for corn, dairy products, and soybeans more than offset higher prices for meat, vegetables, and cotton. Agricultural export prices fell 3.5 percent over the past year driven by lower prices for corn, vegetables, cotton, nuts, and dairy products.

All Exports Excluding Agriculture: The price index for nonagricultural exports rose 0.6 percent in May, after declining 5.7 percent from January to April. In May, rising prices for nonagricultural industrial supplies and materials more than offset declining prices for capital goods, consumer goods, automotive vehicles, and nonagricultural foods. Despite the May increase, nonagricultural export prices decreased 6.3 percent over the past year, led by lower prices for nonagricultural industrial supplies and materials.

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices advanced 2.3 percent in May, after a 9.9-percent decrease the previous month. The May increase was driven by a 9.2-percent rise in export fuel prices which followed a 27.7-percent decline in April.

Finished Goods: Each of the major finished goods indexes decreased in May. Capital goods prices declined 0.2 percent, the largest decrease since the index fell 0.2 percent in October 2019. Prices for consumer goods decreased 0.2 percent in May following declines of 0.3 percent in April and 0.6 percent in March. The largest contributor to the May drop was a 0.3-percent decline in the price index for medicinal, dental, and pharmaceutical materials. Automotive vehicles prices edged down 0.1 percent for the second consecutive month in May.

Measures of Import and Export Prices by Locality

Imports by Locality of Origin: Import prices from China were unchanged in May following a 0.1-percent advance in April. The price index for imports from China declined 1.0 percent from May 2019 to May 2020, the smallest 12-month drop since the index fell 1.0 percent for the year ended March 2019. Prices for imports from Japan declined 0.3 percent in May, the largest monthly decrease since a 0.3-percent drop in October 2017. Import prices from Japan fell 0.4 percent for the year ended in May, the largest 12-month decline since the index decreased 1.1 percent from December 2016 to December 2017. The price indexes for imports from Canada and Mexico each increased in May, rising 3.6 percent and 1.3 percent, respectively. In contrast, prices for imports from the European Union edged down 0.1 percent for the second consecutive month. (See table 7.)

Exports by Locality of Destination: Prices for exports to China increased 2.7 percent in May following consecutive 2.1-percent declines in April and March. The May advance was the largest 1-month rise since the index was first published in December 2017. Despite the May increase, the price index for exports to China fell 3.7 percent over the past 12 months. Export prices to Japan rose 1.7 percent in May, after decreasing 7.8 percent from January to April. Prices for exports to Japan declined 5.7 percent for the year ended in May. The price indexes for exports to Canada, Mexico, and the European Union all increased in May following declines in each of the previous 3 months. In May, export prices to Canada advanced 0.7 percent, prices for exports to Mexico rose 1.5 percent, and export prices to the European Union increased 0.6 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 increased 2.7 percent in May following declines of 2.2 percent in April and 2.1 percent in March. The index for U.S. terms of trade with Japan advanced 2.1 percent in May, after a 3.9-percent drop the previous month. The U.S. terms of trade with Japan advanced in May because of higher export prices to Japan and lower import prices from Japan. The indexes for U.S. terms of trade with the European Union and Mexico also rose in May, increasing 0.6 percent and 0.2 percent, respectively. In contrast, the U.S. terms of trade with Canada declined 2.8 percent in May, after increasing 7.6 percent in April. The May decrease was the largest monthly drop since the index fell 6.6 percent in February 2019. (See table 9.)

Import and Export Services

Imports: Import air passenger fares edged down 0.1 percent in May following a 12.3-percent decrease in April and a 9.8-percent drop in March. In May, falling Latin American/Caribbean and Asian fares more than offset higher European fares. The index for import air passenger fares decreased 21.7 percent for the year ended in May, the largest over-the-year drop since the index was first published in March 1988. Import air freight prices rose 27.5 percent in May, after advancing 39.9 percent in April. Those are the two largest increases since the index was first published monthly in December 2005. Prices for import air freight rose 80.1 percent over the past 12 months. (See table 10.)

Exports: The index for export air passenger fares declined 0.5 percent in May, after decreasing 20.0 percent over the previous 3 months. The May drop was led by lower European and Latin American/Caribbean fares. In contrast, Asian fares rose 10.4 percent in May. Export air passenger fares fell 15.2 percent over the past year, the largest 12-month drop since the index fell 15.6 percent for the year ended October 2015. Export air freight prices increased 0.7 percent in May following a 2.4-percent drop the previous month. Prices for export air freight declined 1.0 percent from May 2019 to May 2020.

Import and Export Price Index data for June are scheduled for release on Wednesday, July 15, 2020 at 8:30 a.m. (EDT).