July 2020 U.S. Import and Export Price Indexes

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U.S. import prices increased 0.7 percent in July, the U.S. Bureau of Labor Statistics reported today, following a 1.4-percent advance in June and a 0.7-percent rise in May. The increases for all 3 months were primarily driven by higher fuel prices. The price index for U.S. exports advanced 0.8 percent in July, after rising 1.2 percent the previous month.

Imports

U.S. import prices rose for the third consecutive month in July, increasing 0.7 percent for the month and 2.8 percent from April to July, the largest 3-month advance since May 2011. The July advance was led by rising fuel prices; nonfuel prices also contributed to the increase. Despite the advance over the past 3 months, the price index for U.S. imports declined 3.3 percent over the past year. (See table 1.)

Coronavirus (COVID-19) Pandemic Impact on July 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 July release of U.S. Import and Export Price Indexes. Survey response rates for July were 4.9-percentage points lower than those in July 2019. A small number of indexes that are normally published were not published in July. Additional information is available at www.bls.gov/covid19/import- export-price-indexes-covid19-impacts-july-2020.htm.

Fuel Imports: Import fuel prices advanced 6.9 percent in July, after increasing 21.9 percent and 13.7 percent the 2 previous months. The 48.2-percent rise from April to July was the largest 3-month advance since the index increased 58.6 percent in the third quarter of 1990. Despite the recent increases, import fuel prices fell 32.8 percent over the past 12 months. In July, a 7.8-percent advance in petroleum prices more than offset a 9.1-percent decline in natural gas prices. The July rise in petroleum prices followed increases of 23.1 percent in June and 14.3 percent in May; import petroleum prices fell 34.6 percent over the past year. In contrast, natural gas prices advanced 45.1 percent for the year ended in July.

All Imports Excluding Fuel: The price index for nonfuel imports advanced 0.2 percent in July following increases of 0.3 percent in June and 0.1 percent in May. In July, the rise was driven by higher prices for nonfuel industrial supplies and materials, capital goods, and consumer goods which more than offset lower prices for foods, feeds, and beverages and automotive vehicles. Prices for nonfuel imports were unchanged from July 2019 to July 2020.

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials rose 1.2 percent in July, after increasing 1.3 percent the previous month. The July advance was led by higher prices for unfinished metals and lumber.

Finished Goods: Finished goods prices were mixed in July. Capital goods prices rose 0.3 percent, the largest monthly advance since February 2018. The price index for consumer goods increased 0.2 percent, led by higher prices for nontextile apparel goods and medicinal, dental, and pharmaceutical materials. In contrast, prices for automotive vehicles decreased 0.2 percent in July.

Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages decreased 1.2 percent in July, after a 0.4-percent drop in June. The July decline was driven by a 10.4-percent drop in meat prices and a 5.5-percent fall in fruit prices.

Exports

U.S. export prices advanced 0.8 percent in July following a 1.2-percent increase the previous month. Higher prices for nonagricultural exports and agricultural exports both contributed to the July rise. Despite the upturn in the past 2 months, the price index for U.S. exports decreased 4.4 percent for the year ended in July. (See table 2.)

Agricultural Exports: Agricultural export prices advanced 1.5 percent for the second consecutive month in July, the first monthly increases since January. In July, rising prices for soybeans, dairy products, corn, vegetables, cotton, and fruit more than offset falling prices for meat, nuts, and wheat. Prices for agricultural exports declined 3.3 percent over the past 12 months, led by a 15.4-perent decrease in corn prices, a 21.6- percent drop in nut prices, and a 5.7-percent fall in meat prices.

All Exports Excluding Agriculture: The price index for nonagricultural exports increased 0.7 percent in July, after advancing 1.2 percent in June. The July rise was primarily driven by increasing prices for nonagricultural industrial supplies and materials; rising prices for capital goods and consumer goods also contributed to the overall advance. In contrast, automotive vehicles prices and prices for nonagricultural foods, feeds, and beverages declined in July. Despite the increases in the past 2 months, nonagricultural prices declined 4.6 percent over the past year.

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials exports rose 2.1 percent in July following advances of 4.2 percent in June and 0.2 percent in May. The index rose 6.6 percent from April to July, after decreasing 16.9 percent the previous 3 months. The July increase was led by a 4.7-percent advance in export fuel prices.

Finished Goods: Finished goods prices were mixed in July. The price index for export capital goods rose 0.2 percent following declines of 0.2 percent in June and 0.1 percent in May. Consumer goods prices advanced 0.5 percent in July, the largest 1-month increase since July 2016. The July 2020 rise followed decreases in each of the previous 4 months and was driven by a 1.4-percent advance in prices for medicinal, dental, and pharmaceutical materials. In contrast, prices for automotive vehicles fell 0.3 percent, after edging down 0.1 percent in June, May, and April.

Measures of Import and Export Prices by Locality

Imports by Locality of Origin: Import prices from China rose 0.2 percent in July, after no change the previous month. The price index for imports from China fell 0.5 percent from July 2019 to July 2020, the smallest 12-month decrease since January 2019. Prices for imports from Japan ticked up 0.1 percent in July following a 0.3-percent increase in June and a 0.3-percent decrease in May. Import prices from Japan also rose 0.1 percent over the past year. Prices for imports from Canada advanced 2.3 percent in July, after rising 13.1 percent in June. Both monthly increases were driven by higher petroleum prices. The price index for imports from Canada declined 10.1 percent over the past 12 months. Import prices from the European Union increased 0.6 percent in July and prices for imports from Mexico rose 0.1 percent. (See table 7.)

Exports by Locality of Destination: Prices for exports to China rose 1.2 percent in July, after increasing 1.5 percent in June and 1.0 percent in May. The 3.7-percent advance from April to July was the largest 3- month rise since the index was first published in December 2017. Despite the recent advances, export prices to China decreased 3.5 percent for the year ended in July. The price index for exports to Japan increased 0.7 percent in July following a 2.6-percent rise the previous month. Prices for exports to Japan declined over the past 12 months, falling 4.8 percent. Export prices to Canada advanced 1.1 percent in July, the largest monthly increase since the index rose 1.5 percent in March 2019. The July advance followed 0.5-percent and 0.1-percent increases the previous 2 months. Despite the recent advances, prices for exports to Canada declined 4.5 percent over the past year. The price indexes for exports to the European Union and Mexico also rose in July, increasing 1.0 percent and 0.9 percent, respectively. (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 0.9 percent in July, after advancing 1.5 percent in June and 1.1 percent in May. The increase of 3.5 percent from April to July was the largest 3-month advance since the index was first published in December 2017. In July, higher export prices to China more than offset rising import prices from China. The index for U.S. terms of trade with Japan rose 0.6 percent in July following a 2.3-percent increase the previous month. The U.S. terms of trade with the European Union and Mexico also advanced in July, rising 0.4 percent and 0.8 percent, respectively. In contrast, the index for U.S. terms of trade with Canada decreased in July, falling 1.1 percent, after declining 11.1 percent in June. (See table 9.)

Import and Export Services

Imports: Import air passenger fares declined 4.0 percent in July following a 7.0-percent increase in June. The July decrease was led by lower European fares which more than offset higher Asian fares. The index for air passenger fares fell 16.5 percent from July 2019 to July 2020. Import air freight prices declined 14.3 percent in July, after falling 3.1 percent the previous month. The July decrease was the largest 1-month decline since the index was first published monthly in December 2005. Despite the drop, import air freight prices rose 51.8 percent for the year ended in July. (See table 10.)

Exports: Export air passenger fares rose for the second consecutive month, advancing 5.5 percent in July following a 6.4-percent increase in June. Those increases followed a 20.3-percent drop from January to May. The July advance was led by higher European, Asian, and Latin American/Caribbean fares. The index for export air passenger fares declined 11.5 percent over the past 12 months. Export air freight prices edged down 0.1 percent in July, after rising 2.2 percent in June and 0.7 percent in May. Prices for export air freight advanced 1.0 percent for the year ended in July.

Import and Export Price Index data for August are scheduled for release on Tuesday, September 15, 2020 at 8:30 a.m. (ET).