January 2023 U.S. Import and Export Price Indexes

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U.S. import prices decreased 0.2 percent in January following a revised 0.1-percent drop the previous month, the U.S. Bureau of Labor Statistics reported today. Lower fuel prices in January more than offset higher nonfuel prices. In contrast, prices for U.S. exports advanced 0.8 percent in January, after falling 3.2 percent in December.

Imports

Prices for U.S. imports fell 0.2 percent in January and have not recorded a monthly advance since June 2022. Overall, U.S. import prices declined 4.9 percent from June 2022 to January 2023. Despite the recent declines, the price index for U.S. imports advanced 0.8 percent over the past year. The 12-month increase in January was the smallest over-the-year rise since import prices fell 0.3 percent from December 2019 to December 2020. (See table 1.)

Fuel Imports: Import fuel prices declined 4.9 percent in January following a 4.4-percent drop the previous month. Lower petroleum and natural gas prices contributed to the January decrease. The price index for import petroleum fell 4.5 percent in January, after declining 7.3 percent in December. Import petroleum prices have not recorded a 1-month advance since June 2022. Prices for import natural gas decreased 11.2 percent in January following a 42.7-percent increase the previous month. Despite the recent declines, import fuel prices rose 0.4 percent over the past year. The increase was driven by a 20.1-percent advance in natural gas prices which more than offset a 1.2-percent drop in petroleum prices.

All Imports Excluding Fuel: The price index for nonfuel imports rose 0.3 percent in January, after advancing 0.4 percent in December. Higher January prices for foods, feeds, and beverages; capital goods; automotive vehicles; and consumer goods more than offset lower nonfuel industrial supplies and materials prices. Prices for nonfuel imports increased 0.8 percent over the past year, the smallest 12-month rise since August 2020.

Foods, Feeds, and Beverages: Import foods, feeds, and beverages prices increased 1.3 percent in January, after advancing 0.6 percent the previous month. The January rise was driven by higher prices for vegetables, fish and shellfish, other animal and vegetable preparations, and coffee.

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials decreased 0.2 percent in January following a 1.2-percent increase the previous month. The January decline was led by lower prices for plastic materials, lumber and other unfinished building materials, and industrial organic chemicals.

Finished Goods: Import prices increased for each of the major finished goods categories in January. The price index for capital goods rose 0.3 percent, after increasing 0.2 percent in December. Higher industrial and service machinery prices drove the January advance. Prices for automotive vehicles increased 0.6 percent in January following no change the previous month. Consumer goods prices also advanced in January, increasing 0.2 percent, after ticking up 0.1 percent in December. The January increase was driven by a 0.8-percent rise in medicinal, dental, and pharmaceutical prices.

Exports

U.S. export prices rose 0.8 percent in January, the first monthly advance since the index increased 1.1 percent in June 2022. In January, higher nonagricultural prices more than offset lower agricultural prices. Prices for U.S. exports advanced 2.3 percent over the past year, the smallest 12-month increase since a 0.4- percent rise in December 2020. (See table 2.)

Agricultural Exports: Prices for agricultural exports declined 0.2 percent in January following a 2.5- percent decrease in December. A 21.6-percent drop in January vegetable prices more than offset higher prices for soybeans and corn. Despite the decline, agricultural export prices rose 5.8 percent from January 2022 to January 2023.

All Exports Excluding Agriculture: The price index for nonagricultural exports increased 0.8 percent in January, after declining 3.3 percent the previous month. Higher prices for nonagricultural industrial supplies and materials; capital goods; automotive vehicles; and consumer goods all contributed to the January advance. In contrast, nonagricultural foods prices decreased 0.2 percent. Nonagricultural export prices rose 1.7 percent over the past year.

Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies and materials rose 0.8 percent in January, after declining 7.1 percent the previous month. The increase in January was the first 1-month advance since June 2022 and was led by higher fuel prices.

Finished Goods: Export prices advanced for each of the major finished goods categories in January. Capital goods prices advanced 0.8 percent in January, the largest monthly increase since the index rose 0.9 percent in January 2022. The January 2023 advance was driven by higher prices for industrial and service machinery and electrical generating equipment. The price index for automotive vehicles increased 1.2 percent in January, the largest monthly advance since the 1-month percent change series began in January 1989. The January increase was led by a 6.7-percent rise in engines and engine parts prices. Prices for consumer goods advanced 0.8 percent in January, the largest 1-month increase since a 0.8-percent rise in March 2022.

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: Import prices from China declined 0.4 percent in January, the largest monthly decrease since November 2016. The January decrease was led by a 2.3-percent drop in the price index for communications equipment manufacturing. Prices for imports from China were unchanged over the past year. In contrast, the price index for imports from Japan rose 0.2 percent in January, after ticking up 0.1 percent the previous month. Import prices from Japan increased 2.0 percent for the year ended in January. Prices for imports from the European Union rose 1.3 percent in January and the price index for imports from Mexico advanced 0.8 percent over the same period. Import prices from the European Union and Mexico also increased over the past 12 months, rising 4.7 percent and 2.7 percent, respectively. In contrast, prices for imports from Canada decreased in January, edging down 0.1 percent following a 3.0- percent decline in December. (See table 7.)

Exports by Locality of Destination: Prices for exports to China rose 1.0 percent in January, after declining 3.0 percent in December. The January increase was the first 1-month advance since June 2022. Despite the January rise, export prices to China declined 2.1 percent over the past 12 months. The price index for exports to Japan fell 0.2 percent in January following a 4.4-percent decrease the previous month. Prices for exports to Japan declined 3.0 percent for the year ended in January, the first 12-month drop in the index since October 2020. Export prices to Mexico and the European Union increased in January, advancing 0.7 percent and 0.2 percent, respectively. In contrast, the price index for exports to Canada fell 0.3 percent in January, after no change in December. (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 increased 1.3 percent in January, the first monthly advance since a 1.7-percent rise in June 2022. Both the increase in export prices to China and the decline in import prices from China contributed to the January advance in U.S. terms of trade with China. Despite the recent rise, U.S. terms of trade with China fell 2.2 percent over the past 12 months. The index for U.S. terms of trade with Japan decreased 0.4 percent in January and 4.9 percent over the past year. U.S. terms of trade with the European Union and Mexico also declined in January, falling 1.2 percent and 0.1 percent, respectively. U.S. terms of trade with Canada decreased 0.2 percent in January, the first 1-month decline since a 0.6-percent drop in June 2022. (See table 9.)

Import and Export Services

Imports: Import air passenger fares fell 12.4 percent in January, the largest 1-month decrease since the index declined 19.4 percent in January 2022. The January 2023 drop followed a 5.9-percent increase in December. The index for import air passenger fares advanced 23.2 percent from January 2022 to January 2023. Import air freight prices recorded a double-digit change for the fourth consecutive month in January, falling 11.2 percent, after a 10.9-percent advance in December, a 10.1-percent decrease in November, and an 11.9-percent drop in October. Prices for import air freight declined 34.7 percent for the year ended in January. (See table 10.)

Exports: In contrast to imports, export air passenger fares increased 12.4 percent in January, the largest monthly advance since a 14.5-percent rise in November 2020. Higher Latin American/Caribbean fares led the January increase and rising Asian and European fares also contributed. The January rise drove the 12.4- percent advance in export air passenger fares over the past 12 months. Export air freight prices increased 1.8 percent in January following a 1.9-percent advance the previous month. Prices for export air freight rose 7.0 percent for the year ended in January.

U.S. Import and Export Price Index data for February 2023 are scheduled for release on Thursday, March 16, 2023, at 8:30 a.m. (ET).