February 2021 U.S. Import and Export Price Indexes

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U.S. import prices advanced 1.3 percent in February following a 1.4-percent increase in January, the U.S. Bureau of Labor Statistics reported today. Higher fuel and nonfuel prices contributed to the advances in each of the past 2 months. Prices for U.S. exports also rose in February, increasing 1.6 percent, after advancing 2.5 percent the previous month.

Coronavirus (COVID-19) Pandemic Impact on February 2021 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 February 2021 release of U.S. Import and Export Price Indexes. Survey response rates for February were 5.2-percentage points lower than those in February 2020. Additional information is available at www.bls.gov/covid19/import-export-price-indexes-covid19-impacts-february-2021.htm.

Imports

The price index for U.S. imports increased 1.3 percent in February following a 1.4-percent advance the previous month. The January rise was the largest monthly advance since March 2012. With the exception of a 0.1-percent downturn in October, import prices have increased each month since April 2020. Prices for U.S. imports rose 3.0 percent over the past year, the largest 12-month advance since the index increased 3.4 percent from October 2017 to October 2018. (See table 1.)

Fuel Imports: Prices for import fuel advanced 11.1 percent in February, after increasing 9.0 percent in January, 7.3 percent in December, and 4.4 percent in November. The February rise was the largest advance since the index increased 15.2 percent in July 2020. An 11.3-percent rise in petroleum prices and an 11.2- percent advance in natural gas prices each contributed to the February increase in import fuel prices. The price index for import fuel rose 6.5 percent over the past year, the first 12-month advance since a 13.2- percent increase in January 2020. Prices for petroleum imports rose 5.5 percent for the year ended in February and natural gas prices advanced 44.8 percent over the same period.

All Imports Excluding Fuel: Nonfuel import prices increased 0.4 percent in February following advances of 0.9 percent in January and 0.4 percent in December. In February, higher prices for nonfuel industrial supplies and materials; foods, feeds, and beverages; capital goods; consumer goods; and automotive vehicles all contributed to the rise in nonfuel import prices. Prices for nonfuel imports increased 2.8 percent over the past 12 months, the largest over-the-year advance since the index rose 2.9 percent in January 2012.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices increased 1.5 percent in February, after advancing 4.4 percent the previous month. The February rise was led by a 2.2- percent increase in chemical prices and a 1.7-percent advance in unfinished metal prices.

Finished Goods: Prices for each of the major finished goods categories rose in February. The price indexes for capital goods, consumer goods, and automotive vehicles all ticked up 0.1 percent.

Foods, Feeds, and Beverages: Prices for import foods, feeds, and beverages advanced 1.6 percent in February, after increasing 1.8 percent the previous month. The February rise was led by higher prices for fruit, meat, and alcoholic beverages.

Exports

U.S export prices advanced 1.6 percent in February, after a 2.5-percent rise in January which was the largest 1-month increase since the index was first published monthly in December 1988. Prices for U.S. exports advanced 5.2 percent for the year ended in February and have not recorded a monthly decline since the index fell 3.5 percent in April 2020. The February 12-month rise was the largest over-the-year increase since the index advanced 5.3 percent in June 2018. (See table 2.)

Agricultural Exports: The price index for agricultural exports rose 2.9 percent following a 6.0-percent increase the previous month. Export agricultural prices have not recorded a monthly drop since August 2020. In February, higher prices for corn, fruit, soybeans, cotton, dairy products, meat, and wheat more than offset lower nut prices. Prices for agricultural exports advanced 16.1 percent over the past year, the largest 12-month rise since the index increased 22.7 percent in September 2011. The advance was primarily led by higher soybean and corn prices.

All Exports Excluding Agriculture: Nonagricultural export prices rose 1.5 percent in February, after increases of 2.2 percent in January and 1.3 percent in December. Higher prices for nonagricultural industrial supplies and materials, capital goods, consumer goods, and automotive vehicles all contributed to the February advance. Prices for nonagricultural exports rose 4.1 percent from February 2020 to February 2021, the largest 12-month increase since August 2018.

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials advanced 3.6 percent in February following a 5.8-percent rise the previous month. The February increase was led by an 8.8-percent rise in export fuel prices.

Finished Goods: Prices for each of the major finished goods categories advanced in February. Capital goods prices increased 0.4 percent for the second consecutive month in February, driven by higher prices for transportation equipment excluding automobiles. Prices for consumer goods rose 0.3 percent in February, after declining 0.6 percent in January. The price index for medicinal, dental, and pharmaceutical materials was the largest contributor to the movement in both months. Automotive vehicle prices also rose in February, ticking up 0.1 percent.

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 February, after increasing 0.2 percent in January and 0.4 percent in December. The 0.9-percent advance from November to February was the largest 3-month increase since the index rose 1.0 percent for the 3 months ended November 2011. Prices for imports from China increased 1.2 percent over the past year, the largest 12- month advance since June 2012. Import prices from Japan also rose in February, ticking up 0.1 percent following a 0.3-percent increase the previous month. The price index for imports from Japan advanced 0.7 percent over the past 12 months, the largest over-the-year rise since the index increased 1.0 percent from December 2017 to December 2018. Prices for imports from Canada advanced 3.8 percent in February, led by higher fuel prices. Import prices from Mexico and the European Union each increased 0.7 percent in February. (See table 7.)

Exports by Locality of Destination: Prices for exports to China rose 0.6 percent in February, after ticking up 0.1 percent the previous month. The price index for exports to China increased 5.4 percent over the past 12 months, the largest over-the-year advance since the index was first published in December 2017. Export prices to Japan rose 1.5 percent in February following a 2.0-percent increase in January. Prices for exports to Japan also recorded the largest 12-month increase since the index was first published in December 2017, advancing 6.2 percent. The price indexes for exports to Canada and Mexico also rose in February, increasing 1.1 percent and 2.3 percent, respectively. Export prices to the European Union advanced 1.3 percent in February and 4.3 percent over the past 3 months. (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. U.S. terms of trade with China rose 0.3 percent in February, after edging down 0.1 percent the previous month. In February, rising export prices to China more than offset advancing import prices from China. The index for U.S. terms of trade with China increased 4.1 percent over the past year, the largest 12-month advance since the index was first published in December 2017. U.S. terms of trade with Japan rose 1.4 percent in February following a 1.7-percent increase in January. The index for U.S terms of trade with Japan has not recorded a monthly decrease since April 2020. U.S. terms of trade with Mexico and the European Union also advanced in February, rising 1.6 percent and 0.6 percent, respectively. In contrast, U.S. terms of trade with Canada declined 2.6 percent in February. (See table 9.)

Import and Export Services

Imports: The index for import air passenger fares advanced 1.9 percent in February, after declining 5.6 percent in January. In February, higher European fares more than offset lower Asian fares. Despite the February increase, import air passenger fares decreased 12.2 percent over the past 12 months. Import air freight prices fell 1.8 percent in February following a 5.8-percent decrease the previous month. Prior to that, prices for import air freight rose 21.6 percent from September to December. Even with the recent downturn, import air freight prices advanced 68.4 percent over the past year. (See table 10.)

Exports: Export air passenger fares declined 4.7 percent in February, after increasing 11.2 percent in January. The February decrease was driven by lower Latin American/Caribbean and Asian fares which more than offset higher European fares. Despite the drop, export air passenger fares advanced 13.5 percent for the year ended in February. Prices for export air freight fell 0.7 percent in February following a 1.4- percent increase in January. Export air freight prices also declined over the past 12 months, decreasing 0.4 percent from February 2020 to February 2021.

U.S. Import and Export Price Index data for March are scheduled for release on Wednesday, April 14, 2021 at 8:30 a.m. (ET).