August 2020 U.S. Import and Export Price Indexes

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U.S. import prices rose 0.9 percent in August, the U.S. Bureau of Labor Statistics reported today, following advances of 1.2 percent in July and 1.4 percent in June. Higher prices for both fuel and nonfuel imports contributed to the August increase. Prices for U.S. exports also advanced in August, rising 0.5 percent, after increasing 0.9 percent the previous month.

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

The Bureau of Labor Statistics did not make changes to either the collection method or estimation methodology for the August release of U.S. Import and Export Price Indexes. Survey response rates for August were 3.5-percentage points lower than those in August 2019. A small number of indexes that are normally published were not published in August. Additional information is available at www.bls.gov/covid19/import-export-price-indexes-covid19-impacts-august-2020.htm.

Imports

Prices for U.S. imports advanced 0.9 percent in August, after rising 3.3 percent from April to July. Prior to that, import prices decreased 5.6 percent from January to April. Despite the recent increases, U.S. import prices declined 1.4 percent for the year ended in August. (See table 1.)

Fuel Imports: The price index for import fuel rose 3.3 percent in August following increases of 15.1 percent in July, 21.3 percent in June, and 13.9 percent in May. In August, higher prices for both petroleum and natural gas contributed to the advance. Petroleum prices increased 2.9 percent in August, after rising 63.3 percent from April to July. The price index for natural gas advanced 12.2 percent in August following a 9.1-percent drop the previous month. Despite the increases in each of the past 4 months, import fuel prices fell 22.2 percent from August 2019 to August 2020. Prices for petroleum declined 24.1 percent and natural gas prices increased 53.0 percent over the past year.

All Imports Excluding Fuel: Nonfuel import prices rose 0.7 percent in August, after increasing 0.2 percent in July and 0.3 percent in June. The August advance was the largest monthly increase since a 0.8-percent rise in April 2011. In August, the increase was driven by a 3.6-percent advance in nonfuel industrial supplies and materials prices. The price index for nonfuel imports rose 0.8 percent from August 2019 to August 2020.

Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials rose 3.6 percent in August, the largest 1-month advance since the index was first published in December 2001. The August increase was led by higher prices for unfinished metals and selected building materials.

Finished Goods: Prices for each of the major finished goods categories increased in August. Consumer goods prices rose 0.2 percent, after advancing 0.3 percent in July. The August increase was driven by higher prices for coins, gems, jewelry, and collectibles. Prices for capital goods and automotive vehicles each ticked up 0.1 percent in August.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices advanced 0.4 percent in August following declines of 0.9 percent in July and 0.4 percent in June. The increase in August was led by rising prices for meat, food oils and oilseeds, and vegetables.

Exports

The price index for U.S. exports increased 0.5 percent in August, after advancing 0.9 percent in July and 1.8 percent in June. In August, rising nonagricultural prices more than offset falling agricultural prices. U.S. export prices declined 2.8 percent over the past 12 months, the smallest over-the-year decrease since February 2020. (See table 2.)

Agricultural Exports: Prices for agricultural exports declined 2.2 percent in August following consecutive 1.6-percent increases in July and June. In August, declining prices for vegetables, corn, and dairy products, which fell 11.8 percent, 7.1 percent, and 9.9 percent, respectively, drove the drop in agricultural prices. Export agricultural prices also fell over the past year, decreasing 2.9 percent led by a 16.1-percent drop in corn prices, a 24.4-percent fall in nut prices, and a 5.0-percent decline in meat prices.

All Exports Excluding Agriculture: Nonagricultural export prices advanced 0.8 percent in August, after increasing 0.9 percent in July and 1.7 percent in June. The August rise was primarily led by higher nonagricultural industrial supplies and materials prices; rising prices for consumer goods, capital goods, and nonagricultural foods also contributed to the increase. The price index for nonagricultural exports decreased 2.8 percent for the year ended in August. Lower prices for nonagricultural industrial supplies and materials, consumer goods, nonagricultural foods, and automotive vehicles more than offset higher capital goods prices.

Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies and materials increased 2.3 percent in August following advances of 2.2 percent in July and 6.1 percent in June. The August rise was driven by higher prices for nonferrous metals, chemicals, and fuel.

Finished Goods: Finished goods prices were mostly up in August. Prices for export consumer goods rose 0.3 percent, after increasing 0.2 percent in July. The August advance was the largest 1-month rise since a 0.3-percent increase in July 2019 and was led by a 0.3-percent advance in medicinal, pharmaceutical, and dental materials prices. The price index for export capital goods rose 0.1 percent in August following a 0.3- percent increase the previous month. Automotive vehicles prices were unchanged in August.

Measures of Import and Export Prices by Locality

Imports by Locality of Origin: The price index for imports from China was unchanged in August following a 0.2-percent advance the previous month. Prices for imports from China declined 0.3 percent over the past 12 months. Import prices from Japan were unchanged for the second consecutive month in August. The price index for imports from Japan decreased 0.2 percent for the year ended in August. Prices for imports from Canada increased 3.3 percent in August, after advancing 20.1 percent from April to July. Despite the recent increases, import prices from Canada fell 4.6 percent for the year ended in August. The price indexes for imports from Mexico and the European Union also rose in August, increasing 0.9 percent and 0.4 percent, respectively. (See table 7.)

Exports by Locality of Destination: Export prices to China advanced 0.8 percent in August, after rising 1.3 percent the previous month. Prices for exports to China were unchanged over the past year. The price index for exports to Japan increased 0.6 percent for the second consecutive month in August following a 4.4-percent advance in June. Despite the recent increases, export prices to Japan decreased 2.1 percent from August 2019 to August 2020. Prices for exports to Canada rose 0.7 percent in August, after advances of 1.3 percent in July and 1.6 percent in June. The price index for exports to Canada declined 1.9 percent over the past 12 months. Export prices to Mexico and the European Union also increased in August, rising 0.5 percent and 0.2 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 index for U.S. terms of trade with China advanced 0.8 percent in August, after rising 5.2 percent from April to July, the largest 3-month advance since the index was first published in December 2017. The U.S. terms of trade with Japan rose 0.6 percent for the second consecutive month in August following a 4.1-percent increase in June. In contrast, the index for U.S. terms of trade with Canada fell 2.5 percent in August, after declining 14.2 percent from April to July. In August, higher import prices from Canada more than offset increasing export prices to Canada. The U.S. terms of trade with Mexico and the European Union also decreased in August, declining 0.4 percent and 0.2 percent, respectively. (See table 9.)

Import and Export Services

Imports: Import air passenger fares ticked up 0.1 percent in August, after falling 4.0 percent in July and rising 7.0 percent in June. In August, rising prices for Asian fares more than offset lower European and Latin American/Caribbean fares. Import air passenger fares declined 8.9 percent over the past 12 months. The price index for import air freight advanced 1.8 percent in August following a 14.0-percent drop in July and a 3.1-percent decrease in June. Import air freight prices rose 55.8 percent from August 2019 to August 2020. (See table 10.)

Exports: Export air passenger fares increased 3.1 percent in August, after advancing 5.5 percent in July and 6.4 percent in June. The August rise was led by a 17.5-percent increase in Asian fares, which rose 43.0 percent from April to August. Despite the recent advances, overall export air passenger fares declined 5.8 percent for the year ended in August. Prices for export air freight increased 1.1 percent in August following a 0.1-percent decrease the previous month and a 2.2-percent advance in June. The index for export air freight prices rose 3.3 percent over the past year, the largest 12-month advance since the index increased 3.8 percent for the year ended February 2019.

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