December 2020 U.S. Import and Export Price Indexes

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

U.S. import prices advanced 0.9 percent in December, the U.S. Bureau of Labor Statistics reported today, following a 0.2-percent increase the previous month. Higher fuel and nonfuel prices both contributed to the December rise in import prices. Prices for U.S. exports also rose in December, advancing 1.1 percent, after increasing 0.7 percent in November.

Coronavirus (COVID-19) Pandemic Impact on December 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 December release of U.S. Import and Export Price Indexes. Survey response rates for December were 5.3-percentage points lower than those in December 2019. A small number of indexes that are normally published were not published in December. Additional information is available at www.bls.gov/covid19/import-export-price-indexes-covid19-impacts-december-2020.htm.

Imports

The price index for U.S. imports rose 0.9 percent in December, after advancing 0.2 percent from August to November. The December increase was the largest monthly advance since August. Import prices declined 0.3 percent for the year ended in December. The last time the index rose on a 12-month basis was a 0.5- percent increase in January 2020. (See table 1.)

Fuel Imports: Import fuel prices rose 7.8 percent in December following a 4.8-percent increase in November. The December advance was the largest rise since a 15.2-percent increase in July 2020. In December, the advance was led by rising petroleum prices which more than offset lower natural gas prices. The price index for import petroleum rose 9.1 percent in December, after increasing 2.9 percent the previous month. In contrast, prices for natural gas fell 7.5 percent in December, after advancing 44.2 percent in November. Despite the recent increases, import fuel prices declined 19.5 percent in 2020, the largest calendar-year drop since the index fell 41.0 percent in 2015. In December, prices for petroleum decreased 20.4 percent on a 12-month basis and natural gas prices decreased 0.2 percent.

All Imports Excluding Fuel: Prices for nonfuel imports rose 0.4 percent in December following a 0.2- percent decrease the previous month. The December advance was driven by higher prices for nonfuel industrial supplies and materials and for consumer goods which more than offset declining foods, feeds, and beverages prices. Nonfuel import prices increased 1.9 percent in 2020, the largest calendar-year advance since the index rose 3.4 percent in 2011.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices advanced 2.3 percent, after declining 0.3 percent in November. The December increase was led by higher prices for unfinished metals, chemicals, and lumber.

Finished Goods: Finished goods prices were mostly unchanged in December. Consumer goods prices ticked up 0.1 percent following no change the previous month. Prices for capital goods and automotive vehicles were unchanged.

Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages decreased 0.2 percent in December following a 2.2-percent drop the previous month. The December decline was driven by a 7.6-percent decrease in vegetable prices.

Exports

U.S. export prices increased 1.1 percent in December, the largest 1-month advance since a 1.8-percent rise in June 2020. In December, higher agricultural and nonagricultural prices contributed to the increase in export prices. Prices for U.S. exports rose 0.2 percent from December 2019 to December 2020, the first 12- month advance since January 2020. (See table 2.)

Agricultural Exports: The price index for agricultural exports rose 0.6 percent in December following 3.5- percent increases in November and October. In December, higher prices for soybeans more than offset declining prices for vegetables and dairy products. Prices for agricultural exports advanced 5.1 percent over the past 12 months, the largest over-the-year advance since the index rose 5.3 percent from June 2017 to June 2018. Higher soybean prices drove the increase in agricultural prices over the past year.

All Exports Excluding Agriculture: Prices for nonagricultural exports advanced 1.3 percent in December, after increasing 0.3 percent in November. The December rise was the largest 1-month advance since the index increased 1.7 percent in June 2020. In December, the advance in export prices was led by higher prices for nonagricultural industrial supplies and materials. Increasing prices for consumer goods, capital goods, automotive vehicles, and nonagricultural foods, feeds, and beverages also contributed to the overall advance. Despite the December increase, the price index for nonagricultural exports declined 0.2 percent over the past 12 months.

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices rose 3.4 percent in December following a 1.5-percent advance the previous month. The December advance was driven by an 8.9-percent increase in export fuel prices.

Finished Goods: Finished goods prices were up in December. Consumer goods prices advanced 0.4 percent, after decreasing 0.8 percent in November. The December rise was led by a 0.7-percent increase in medicinal, dental, and pharmaceutical preparatory materials. The price indexes for capital goods and automotive vehicles both ticked up 0.1 percent in December.

Measures of Import and Export Prices by Locality

Imports by Locality of Origin: The price index for imports from China rose 0.3 percent in December, after advancing 0.2 percent the previous month. The December increase was the largest monthly advance since the index rose 0.3 percent in November 2017. Import prices from China increased 0.5 percent in 2020, the first calendar-year increase since the index advanced 3.6 percent in 2011. Prices for imports from Japan rose 0.2 percent in December and have not recorded a monthly drop since July 2020. The price index for imports from Japan increased 0.4 percent for the year ended in December, the largest over-the-year advance since the index rose 0.4 percent in January 2020. Import prices from Canada also increased in December, advancing 3.7 percent, after edging down 0.1 percent in each of the previous 3 months. Prices for imports from the European Union rose 0.6 percent in December and import prices from Mexico ticked up 0.1 percent for the same period. (See table 7.)

Exports by Locality of Destination: Export prices to China increased 1.8 percent in December following a 1.7-percent advance in November. The December rise was the largest monthly increase since the index advanced 3.0 percent in June 2020. Prices for exports to China rose 3.6 percent from December 2019 to December 2020. The price index for exports to Japan increased 1.3 percent in December, the largest 1- month advance since the index rose 4.4 percent in June 2020. Export prices to Japan increased 1.4 percent in 2020. Prices for exports to Canada advanced 0.4 percent in December, after rising 1.1 percent the previous month. The price indexes for exports to the European Union and Mexico also increased in December, advancing 1.6 percent and 1.0 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 rose 1.5 percent for the second consecutive month in December. The increases were the largest monthly advances since the index rose 3.0 percent in June 2020. The index for U.S. terms of trade with Japan increased 1.1 percent in December, after advancing 0.4 percent the previous month. The December increase was the largest 1-month advance since the index rose 4.1 percent in June 2020. In contrast, the U.S. terms of trade with Canada declined 3.2 percent in December. Higher import prices from Canada more than offset rising export prices to Canada. The index for U.S. terms of trade with the European Union increased 0.9 percent in December following a 0.2-percent advance in November. The U.S. terms of trade with Mexico also rose in December, advancing 1.0 percent, after a 1.8-percent increase the previous month. (See table 9.)

Import and Export Services

Imports: Import air passenger fares advanced 3.9 percent in December following an 8.1-percent increase from August to November. In December, the increase was driven by higher Asian fares which more than offset lower European fares. Despite the recent advances, import air passenger fares fell 16.4 percent for the year ended in December. The price index for import air freight increased 6.2 percent in December and rose 21.4 percent in the fourth quarter of 2020. Import air freight prices advanced 75.8 percent, the largest calendar-year increase since the index was first published in December 1990. (See table 10.)

Exports: Export air passenger fares declined 9.5 percent in December, after increasing 14.5 percent in November. The December decline was the largest monthly drop since the index fell 11.6 percent in February 2017, and was led by a 24.5-percent decrease in Asian fares. Despite the December decline, export air passenger fares advanced 4.4 percent over the past 12 months. Export air freight prices rose 5.8 percent in December and 2.7 percent over the past year. The December increase was the largest monthly advance since the index rose 5.8 percent in May 2014.

U.S. Import and Export Price Index data for January 2021 are scheduled for release on Thursday, February 18, 2021 at 8:30 a.m. (ET).