July 2022 U.S. Import and Export Price Indexes

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U.S. import prices decreased 1.4 percent in July, after advancing 0.3 percent in June, the U.S. Bureau of Labor Statistics reported today. Lower fuel and nonfuel prices in July contributed to the decline in U.S. import prices. The price index for U.S. exports fell 3.3 percent in July following a 0.7-percent advance the previous month.

Imports

Prices for U.S. imports declined on a monthly basis in July for the first time since December 2021, decreasing 1.4 percent. The decline was the largest drop in import prices since the index fell 2.6 percent in April 2020. U.S. import prices rose 8.8 percent over the past 12 months, the smallest over-the-year increase since the index advanced 7.1 percent from March 2020 to March 2021. (See table 1.)

Fuel Imports: Import fuel prices declined 7.5 percent in July following 6.2-percent increases in June and May. The July decrease was the first 1-month drop since a 7.7-percent decline in December 2021. Despite the July drop, import fuel prices advanced 56.6 percent over the past year. Lower prices for petroleum and natural gas contributed to the July decline in import fuel prices. Petroleum prices fell 6.8 percent, after rising 5.9 percent in June and 5.4 percent in May. Natural gas prices decreased 20.6 percent following a 54.3- percent advance in the second quarter of 2022. The July decline was the largest monthly drop in natural gas prices since a 22.1-percent decrease in June 2019. Prices for petroleum increased 56.6 percent for the year ended in July and natural gas prices rose 69.8 percent over the same period.

All Imports Excluding Fuel: The price index for nonfuel imports fell for the third consecutive month, decreasing 0.5 percent in July, after declines of 0.6 percent in June and 0.3 percent in May. The July drop was driven by lower prices for nonfuel industrial supplies and materials; and foods, feeds, and beverages, which more than offset higher prices for automotive vehicles and capital goods. Despite the recent declines, nonfuel import prices advanced 4.1 percent over the past year.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices fell 0.9 percent in July following 0.7- percent and 0.6-percent decreases in June and May, respectively. The July decline was the largest 1-month drop since November 2020. The monthly decrease was led by lower prices for fish and shellfish; and food oils and oilseeds which more than offset higher vegetable and bakery product prices.

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials fell 2.6 percent in July, after decreasing 2.3 percent in June. The July drop was the largest monthly decline since the index fell 3.3 percent in April 2020. Lower prices for unfinished metals, finished metals, selected building materials, and chemicals drove the July decline in nonfuel industrial supplies and materials prices.

Finished Goods: Prices for most of the major finished goods categories were up in July. Automotive vehicles prices advanced 0.6 percent following a 0.3-percent increase in June. Higher prices in July for passenger cars led the advance in automotive vehicles prices. The price index for capital goods increased 0.2 percent in July, after no change the previous month. The July rise in capital goods prices was driven by higher prices for industrial and service machinery. Prices for consumer goods were unchanged in July, after decreasing 0.4 percent in June.

Exports

U.S. export prices fell 3.3 percent in July, after rising 0.7 percent in June. The July decline was the largest 1- month decrease since the index fell 3.5 percent in April 2020. Lower agricultural and nonagricultural prices each contributed to the July decline. Prices for U.S. exports rose 13.1 percent over the past year, the lowest 12-month advance since the index increased 9.6 percent in March 2021. (See table 2.)

Agricultural Exports: The price index for agricultural exports fell 3.0 percent in July, after edging down 0.1 percent the previous month. The July decline was the largest monthly drop since the index decreased 3.3 percent in April 2020. Lower prices for soybeans, wheat, and cotton in July led the decline in agricultural prices. Despite the July decrease, agricultural export prices rose 13.3 percent over the past 12 months.

All Exports Excluding Agriculture: Prices for nonagricultural exports decreased 3.3 percent in July, after advancing 0.8 percent in June and 2.8 percent in May. The July decline was led by lower prices for nonagricultural industrial supplies and materials; consumer goods; and nonagricultural foods which more than offset higher prices for capital goods and automotive vehicles. Nonagricultural export prices increased 13.1 percent over the past year.

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices fell 7.0 percent in July, the first monthly decline since December 2021 and the largest decrease since a 10.4- percent drop in April 2020. The July decrease was driven by a 12.3-percent decline in fuel prices, the largest 1-month decrease since a 29.5-percent drop in April 2020.

Finished Goods: Prices were mostly up for the major finished goods categories in July. Capital goods prices increased 0.8 percent following no change the previous month. The July advance was the largest monthly increase since the index rose 0.9 percent in January 2022. Automotive vehicles prices advanced 0.6 percent in July, led by higher prices for engines and engine parts. In contrast, consumer goods prices edged down 0.1 percent for the second consecutive month in July.

More information for the major import and export price indexes can be found at www.bls.gov/web/ximpim/largest.htm.

Measures of Import and Export Prices by Locality

Imports by Locality of Origin: Prices for imports from China were unchanged in July, after declining 0.2 percent in June and 0.1 percent in May. Import prices from China prior to May recorded advances every month from November 2020 to April 2022. Despite the recent drops, the price index for imports from China rose 2.8 percent over the past year. Import prices from Japan fell 0.3 percent in July following a 0.1-percent decrease the previous month. The July decline was the largest 1-month drop since May 2020. Prices for imports from Japan rose 1.0 percent for the year ended in July. The price indexes for imports from Canada and Mexico also declined in July, falling 5.0 percent and 0.6 percent, respectively. The July decreases in import prices from Canada and Mexico were the first monthly drops since December 2021. Prices for imports from the European Union were unchanged in July, after rising 1.2 percent in June. (See table 7.)

Exports by Locality of Destination: Export prices to China fell 4.9 percent in July following a 1.7-percent increase in June and a 1.6-percent advance in May. The July decrease was the largest 1-month decline since the monthly percent change series began in January 2018. Despite the July drop, prices for exports to China rose 9.7 percent over the past 12 months. The price index for exports to Japan declined 3.0 percent in July, the largest 1-month decrease since the index fell 3.5 percent in April 2020. Export prices to Japan advanced 12.3 percent from July 2021 to July 2022. Prices for exports to Canada decreased 2.5 percent in July and export prices to Mexico declined 5.0 percent over the same period. The price index for exports to the European Union fell 2.1 percent in July, after rising 0.6 percent the previous month. The July drop was the largest monthly decline since the index fell 2.5 percent in April 2020. (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 fell 5.0 percent in July, after advancing 1.9 percent in June. The July drop was the largest 1-month decline since the monthly percent change series began in January 2018. Despite the decrease in July, the index for U.S. terms of trade with China rose 6.7 percent over the past year. U.S. terms of trade with Japan decreased 2.7 percent in July and advanced 11.2 percent over the past 12 months. Lower export prices to Japan in July more than offset lower import prices from Japan. U.S. terms of trade with Mexico and the European Union decreased in July, falling 4.4 percent and 2.1 percent, respectively. In contrast, U.S. terms of trade with Canada advanced 2.6 percent in July following a 0.7-percent decline in June. Despite the July increase, the index for U.S. terms of trade with Canada decreased 8.2 percent over the past 12 months. (See table 9.)

Import and Export Services

Imports: Import air passenger fares edged down 0.2 percent in July following a 10.1-percent advance the previous month. The July decrease was the first monthly drop since a 19.4-percent decline in January 2022. Lower European fares in July more than offset higher Latin American/Caribbean fares. The index for import air passenger fares rose 11.6 percent over the past year. Prices for import air freight fell 13.2 percent in July, after rising 5.1 percent in June. The July drop was the largest 1-month decline since a 14.0-percent decrease in July 2020. Import air freight prices increased 1.5 percent for the year ended in July. (See table 10.)

Exports: Export air passenger fares advanced 8.3 percent in July following a 5.3-percent increase in June. The July rise was the largest monthly increase since January 2021. Higher Latin American/Caribbean, European, and Asian fares all contributed to the July advance. Export air passenger fares rose 12.1 percent over the past 12 months. The price index for export air freight fell 1.9 percent in July, after declining 1.1 percent the previous month. Despite the recent decreases, export air freight prices advanced 23.4 percent from July 2021 to July 2022.

U.S. Import and Export Price Index data for August 2022 are scheduled for release on Thursday, September 15, 2022 at 8:30 a.m. (ET).