May 2023 U.S. Import and Export Price Indexes

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U.S. import prices decreased 0.6 percent in May, after increasing 0.3 percent the previous month, the U.S. Bureau of Labor Statistics reported today. Lower fuel and nonfuel prices each contributed to the May decline. Prices for U.S. exports fell 1.9 percent in May following a revised 0.1-percent drop in April.

Imports

The price index for U.S. imports declined 0.6 percent in May, resuming the trend of monthly decreases in 2023 following a 0.3-percent increase in April. U.S. import prices fell 5.9 percent for the year ended in May, the largest 12-month drop since the index declined 6.3 percent from May 2019 to May 2020. (See table 1.)

Fuel Imports: Import fuel prices fell 6.4 percent in May following a 4.1-percent increase in April. Lower petroleum and natural gas prices contributed to the May decline which was the largest 1-month drop since August 2022. Prices for import fuel decreased 35.2 percent over the past 12 months, the largest over-the- year decline since the index fell 37.5 percent from June 2019 to June 2020. The price index for petroleum fell 5.9 percent in May, after rising 5.4 percent the previous month. Import petroleum prices declined 34.1 percent over the past year, the largest 12-month drop since June 2020. Prices for natural gas decreased 26.1 percent in May, after an 18.9-percent drop in April. Import natural gas prices fell 67.9 percent over the past 12 months, the largest over-the-year decline since the index fell 68.6 percent for the year ended July 2009.

All Imports Excluding Fuel: Prices for nonfuel imports edged down 0.1 percent in May, after being unchanged the previous month. Lower prices in May for nonfuel industrial supplies and materials and foods, feeds, and beverages more than offset higher prices for automotive vehicles and capital goods. Nonfuel import prices declined 1.6 percent over the past year.

Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages decreased 1.1 percent in May, after being unchanged in April. The May decline was the largest 1-month drop since a 1.5-percent decrease in August 2022. Lower fruit prices drove the decline in May and more than offset higher vegetable prices.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 0.4 percent in May following a 0.1-percent decline the previous month. Lower prices for agricultural products used for industrial supplies and materials and chemicals led the decrease in nonfuel industrial supplies and materials prices.

Finished Goods: Import prices for the major finished goods categories were mostly up in May. The price index for automotive vehicles rose 0.4 percent, after ticking up 0.1 percent in April. Higher automotive parts prices drove the May advance. Prices for capital goods ticked up 0.1 percent in May following a 0.1-percent decrease the previous month. Higher prices for industrial and service machinery led the advance in May. Consumer goods prices were unchanged in May, after rising 0.1 percent in April.

Exports

Prices for U.S. exports declined 1.9 percent in May, the largest monthly drop since December 2022. Lower prices for nonagricultural exports and agricultural exports in May each contributed to the overall decrease. U.S. export prices fell 10.1 percent for the year ended in May, the largest 12-month decline since the 12- month percent change series was first published in September 1984. (See table 2.)

Agricultural Exports: Agricultural export prices decreased 2.1 percent in May, after advancing 0.4 percent in April. The May decline was the largest monthly drop since December 2022. Lower prices for corn, soybeans, and wheat in May more than offset higher meat and fruit prices. Prices for agricultural exports fell 8.1 percent over the past 12 months, the largest over-the-year decline since a 9.1-percent drop in April 2016.

All Exports Excluding Agriculture: The price index for nonagricultural exports fell 1.8 percent in May following a 0.1-percent drop the previous month. The May decrease was the largest 1-month decline since December 2022. Lower prices for nonagricultural industrial supplies and materials and nonagricultural foods more than offset higher prices for capital goods, consumer goods, and automotive vehicles. Nonagricultural export prices decreased 10.5 percent over the past year, the largest 12-month drop since the 12-month percent change series was first published in March 1986.

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices decreased 4.5 percent in May following a 0.5-percent drop the previous month. The May decline was the largest monthly drop since December 2022. The May decrease was led by a 10.1-percent drop in export fuel prices.

Finished Goods: Prices for each of the major finished goods export categories were up in May. Capital goods prices advanced 0.1 percent, after increasing 0.2 percent in April. The price index for capital goods has not recorded a monthly decline since November 2022. Consumer goods prices advanced 0.2 percent in May following 0.3-percent increases in each of the previous 2 months. The May advance in consumer goods prices was driven by higher prices for medicinal, dental, and pharmaceutical materials. Prices for automotive vehicles ticked up 0.1 percent in May, after declining 0.3 percent in April.

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 fell 0.2 percent in May, after declining 0.5 percent the previous month. Import prices from China have not recorded a monthly advance since October 2022. The price index for imports from China decreased 2.0 percent for the year ended in May. Prices for imports from Japan declined 0.2 percent in May following a 0.5-percent increase in April. Import prices from Japan rose on a 12-month basis, advancing 0.6 percent from May 2022 to May 2023. The price index for imports from Canada fell 2.9 percent in May, after advancing 0.5 percent the previous month. Prices for imports from Canada declined 22.4 percent over the past year, the largest 12-month drop since a 26.0- percent decrease in May 2020. Import prices from Mexico edged down 0.1 percent in May following a 0.6- percent advance in April. In contrast, the price index for imports from the European Union rose 0.3 percent in May, after increasing 0.5 percent the previous month. (See table 7.)

Exports by Locality of Destination: The price index for exports to China fell 2.1 percent in May, after declining 0.3 percent in April and 0.4 percent in March. Export prices to China fell 11.5 percent over the past 12 months, the largest over-the-year drop since the 12-month percent change series was first published in December 2018. Prices for exports to Japan fell 2.2 percent in May following a 0.8-percent drop the previous month. Export prices to Japan declined 12.9 percent for the year ended in May, the largest 12- month drop since the 12-month percent change series was first published in December 2018. The price index for exports to Canada decreased 0.9 percent in May, after declining 0.5 percent in April. Prices for exports to Mexico and the European Union also fell in May, decreasing 2.0 percent and 1.9 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. U.S. terms of trade with China declined 1.9 percent in May, the first monthly decrease since December 2022. Lower export prices to China in May more than offset lower import prices from China. The index for U.S. terms of trade with China fell 9.8 percent over the past year. U.S. terms of trade with Japan decreased 2.0 percent in May and 13.3 percent over the past 12 months. The indexes for U.S. terms of trade with Mexico and the European Union also fell in May, declining 1.9 percent and 2.2 percent, respectively. In contrast, U.S. terms of trade with Canada rose 2.2 percent in May and increased 23.9 percent from May 2022 to May 2023. (See table 9.)

Import and Export Services

Imports: Import air passenger fares rose 8.0 percent in May following a 5.4-percent decline in April. The May increase was the largest monthly rise since June 2022 and was primarily led by higher European fares. Import air passenger fares increased 6.3 percent over the past year. Prices for import air freight decreased 4.5 percent in May, after rising 2.3 percent in April. The May drop was driven by lower Asian air freight prices. Import air freight prices declined 37.7 percent for the year ended in May, the largest over-the-year drop since the 12-month percent change series was first published in September 1991. (See table 10.)

Exports: Export air passenger fares declined 5.5 percent in May following a 0.6-percent increase the previous month. The May decline was led by lower Latin American/Caribbean fares which more than offset higher European and Asian fares. The index for export air passenger fares rose 0.4 percent over the past year, the smallest 12-month advance since the most recent decline in November 2021. Export air freight prices fell 3.2 percent in May, after a 0.8-percent drop in April. Prices for export air freight decreased 15.4 percent over the past year, the largest 12-month decline since the index fell 15.7 percent in September 2009.

U.S. Import and Export Price Index data for June 2023 are scheduled for release on Friday, July 14, 2023, at 8:30 a.m. (ET).