October 2020 U.S. Import and Export Price Indexes

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U.S. import prices edged down 0.1 percent in October, the U.S. Bureau of Labor Statistics reported today, after rising 0.2 percent the previous month. The October decline was driven by lower fuel prices which more than offset higher nonfuel prices. In contrast, prices for U.S. exports increased 0.2 percent in October following a 0.6-percent advance in September.

Coronavirus (COVID-19) Pandemic Impact on October 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 October release of U.S. Import and Export Price Indexes. Survey response rates for October were 5.7-percentage points lower than those in October 2019. A small number of indexes that are normally published were not published in October. Additional information is available at www.bls.gov/covid19/import-export-price-indexes-covid19-impacts-october-2020.htm.

Imports

Prices for U.S. imports fell 0.1 percent in October, the first 1-month decline for the index since a 2.6-percent drop in April. From April to September, import prices increased 4.3 percent. Despite the recent increases, prices for U.S. imports decreased 1.0 percent for the year ended in October. (See table 1.)

Fuel Imports: Import fuel prices decreased 1.9 percent in October, after a 5.2-percent drop the previous month. Lower prices for both natural gas and petroleum contributed to the October decline. Natural gas prices fell 18.1 percent in October following increases of 26.3 percent in September and 12.9 percent in August. The October decrease was the largest drop since the index fell 22.1 percent in June 2019. The price index for import petroleum declined 1.0 percent in October, after decreasing 6.8 percent the previous month. Prices for import fuel fell 27.4 percent for the year ended in October. A 29.1-percent decline in petroleum prices over the past 12 months more than offset a 20.9-percent advance in natural gas prices.

All Imports Excluding Fuel: Prices for nonfuel imports rose 0.1 percent in October, after a 0.5-percent increase in September and a 0.7-percent advance in August. Nonfuel import prices have not recorded a 1- month decline since April. The October rise was led by higher prices for nonfuel industrial supplies and materials and foods, feeds, and beverages which more than offset falling prices for consumer goods and automotive vehicles. The price index for nonfuel imports advanced 1.7 percent over the past 12 months, the largest over-the-year increase since the index rose 1.8 percent in May 2018.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices advanced 0.3 percent in October following a 2.7-percent rise the previous month. In October, the increase was driven by higher prices for chemicals and selected building materials.

Finished Goods: Finished goods prices were mostly down in October. Prices for consumer goods decreased 0.2 percent, the first decline since April. The October decline was led by lower prices for coins, gems, jewelry, and collectibles. Automotive vehicles prices also fell in October, edging down 0.1 percent. Prices for capital goods were unchanged.

Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages ticked up 0.1 percent in October, after rising 1.1 percent in September. The October increase was led by a 1.9-percent advance in fish and shellfish prices which more than offset lower prices for fruit, meat, and coffee.

Exports

U.S. export prices increased 0.2 percent in October, continuing the upward trend of the 4 previous months. In October, the advance was driven by higher agricultural export prices; prices for nonagricultural exports were unchanged. Even with the recent increases, export prices declined 1.6 percent for the year ended in October. (See table 2.)

Agricultural Exports: The price index for agricultural exports rose 3.4 percent in October, after increasing 2.8 percent in September. The October advance was the largest rise since the index increased 3.8 percent in December 2018. Higher prices for vegetables, corn, soybeans, and dairy products were the largest contributors to the October increase in agricultural prices. Agricultural export prices advanced 3.1 percent over the past year, the largest 12-month increase since January.

All Exports Excluding Agriculture: Prices for nonagricultural exports were unchanged in October, after rising in each of the 4 previous months. In October, lower prices for nonagricultural industrial supplies and materials and capital goods offset an increase in automotive vehicles prices. Despite not recording a monthly decline since April, nonagricultural export prices decreased 2.0 percent over the past year. A 6.9- percent decline in nonagricultural industrial supplies and materials from October 2019 to October 2020 more than offset higher finished goods prices.

Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies and materials exports fell 0.3 percent, the first decline since the index decreased 10.4 percent in April. The October drop was led by a 1.2-percent decrease in fuel prices.

Finished Goods: Finished goods prices were mixed in October. Automotive vehicles prices rose 0.3 percent, after not changing the 2 previous months. The October rise was the largest monthly advance since January and was driven by higher prices for engines and engine parts. In contrast, prices for capital goods edged down 0.1 percent in October, the first monthly drop since May. The price index for consumer goods was unchanged in October.

Measures of Import and Export Prices by Locality

Imports by Locality of Origin: Import prices from China were unchanged for the second consecutive month in October, after increasing 0.1 percent in August and 0.2 percent in July. Prices for imports from Japan increased 0.2 percent in October following a 0.1-percent advance in September. The October rise was led by higher prices for transportation equipment. Import prices from Japan were unchanged for the year ended in October. The price index for imports from the European Union rose 0.2 percent in October and advanced 2.0 percent over the past year. In contrast, import prices from Canada and Mexico declined in October, falling 0.7 percent and 0.2 percent, respectively. Prices for imports from Canada decreased 3.3 percent from October 2019 to October 2020, and prices for imports from Mexico increased 1.1 percent over the same period. (See table 7.)

Exports by Locality of Destination: The price index for exports to China advanced 0.8 percent in October, after edging down 0.1 percent in September. Prices for exports to China increased 1.3 percent over the past year. Export prices to Japan rose 1.3 percent in October, the largest 1-month advance since a 4.4-percent increase in June. The price index for exports to Japan decreased 0.2 percent for the year ended in October despite not recording a monthly drop since May. Prices for exports to the European Union declined 0.4 percent following increases in each of the 4 previous months. Export prices to the European Union fell 1.4 percent over the past 12 months. Prices for exports to Canada advanced 0.6 percent in October following consecutive 0.9-percent increases the 2 previous months. Prices for exports to Mexico rose 1.1 percent in October, after a 0.4-percent advance the previous month. (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 rose 0.8 percent in October, after edging down 0.1 percent in September. The U.S. terms of trade with Japan advanced 1.0 percent in October, and have not recorded a monthly decrease since April. The index for U.S. terms of trade with the European Union declined 0.6 percent in October following a 0.4-percent drop the previous month. In October, a decrease in export prices to the European Union and an increase in import prices from the European Union contributed to the decline in the U.S. terms of trade. The U.S. terms of trade with Canada advanced 1.3 percent in October, and the U.S. terms of trade with Mexico increased 1.2 percent. (See table 9.)

Import and Export Services

Imports: Import air passenger fares increased 3.9 percent following a 4.4-percent rise in September. Higher European, Asian, and Latin American/Caribbean fares all contributed to the October advance. Despite the recent advances, import air passenger fares decreased 12.4 percent from October 2019 to October 2020. Prices for import air freight increased 4.9 percent in October, after falling 2.9 percent the previous month. The index for import air freight rose 58.0 percent for the year ended in October. (See table 10.)

Exports: Export air passenger fares fell 4.0 percent in October, the first monthly decline for the index since May. The decrease followed advances of 5.9 percent in September, 3.1 percent in August, 5.5 percent in July, and 6.4 percent in June. The October drop was led by a 21.0-percent decline in Asian fares which more than offset rising Latin American/Caribbean and European fares. Export air passenger fares increased 3.3 percent over the past year. Export air freight prices fell 6.8 percent in October, the largest 1-month drop since the index was first published monthly in December 2005. Export air freight prices declined 4.7 percent for the year ended in October.

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