The U.S. Import Price Index rose 3.2 percent in June, the U.S. Department of Labor’s Bureau of Labor Statistics reported on July 10, led by higher petroleum prices. The June increase followed a 1.4 percent advance in May. Export prices also increased in June, rising 1.1 percent after advancing 0.5 percent in the previous month.
Import Goods
U.S import prices increased 3.2 percent in June, the largest monthly advance since a 3.2 percent rise in November 2007. Import prices have risen for each of the past four months but decreased overall for the year ended in June, declining 17.4 percent. The June increase in import prices was driven by a 20.3 percent jump in petroleum prices, the largest monthly advance for that index since a 20.5 percent increase in April 1999. Petroleum prices have risen 69.5 percent since January but, despite the recent advances, fell 45.9 percent over the past 12 months. Non-petroleum import prices ticked up 0.2 percent in June, and decreased 6.5 percent over the past year.
The advance in non-petroleum prices was led by a 0.7 percent increase in the price index for non-petroleum industrial supplies and materials. Higher prices for unfinished metals were the primary contributor to the June increase in non-petroleum industrial supplies and materials prices, which followed a 0.8 percent rise in May.
Prices for foods, feeds, and beverages, for consumer goods, and for automotive vehicles also rose in June. Foods, feeds, and beverages prices increased 0.5 percent as higher prices for meat and coffee more than offset lower vegetable prices. The price indexes for consumer goods and automotive vehicles each ticked up 0.1 percent.
In contrast, capital goods prices edged down 0.1 percent in June, led by a 0.5 percent decrease in computer prices. Excluding computer prices, capital goods prices advanced 0.1 percent.
Export Goods
Export prices rose for the third consecutive month in June, advancing 1.1 percent following 0.5 percent increases in each of the two previous months. Higher prices for both agricultural and non-agricultural exports contributed to the overall increase in June which was the largest monthly rise in export prices since a 1.5 percent increase in July 2008. Despite the advance, export prices declined 6.4 percent over the past year. Prices for agricultural exports increased 4.8 percent in June and 12.7 percent for the second quarter of 2009, the largest three-month gain since the first quarter of 2008. Both advances were led by rising prices for soybeans, corn, and wheat. Even with the increase over the past three months, agricultural prices fell 12.5 percent for the June 2008-2009 period. Non-agricultural prices rose 0.8 percent in June, but decreased 5.7 percent over the past 12 months.
A 2.2 percent increase in the price index for non-agricultural industrial supplies and materials led the overall advance in non-agricultural prices in June. Higher prices for fuels, chemicals and metals all contributed to the advance.
Capital goods prices and consumer goods prices also rose in June, advancing 0.2 percent and 0.5 percent, respectively. The increase in capital goods prices was driven by a 0.4 percent rise in the price index for transportation equipment while higher consumer goods prices were led by a 0.9 percent advance in medicinal, dental and pharmaceutical prices.
In contrast, the price index for automotive vehicles edged down 0.1 percent in June after remaining unchanged in May.
Imports by Locality of Origin
Led by higher fuel prices in June, the price indexes for imports from Canada and from Mexico rose 2.8 percent and 1.6 percent, respectively. Despite rising in June, each index remained down over the past year; import prices from Canada fell 24.8 percent for the year ended in June while prices for imports from Mexico decreased 13.5 percent for the same period.
Import prices from the European Union and from Japan both advanced 0.7 percent in June after falling 0.2 percent and remaining unchanged, respectively, the previous month. The price index for imports from the European Union fell 7.2 percent for the year ended in June, while prices for imports from Japan rose 1.9 percent.
In contrast, prices for imports from China decreased 0.1 percent in June after recording no change in May. Overall import prices from China decreased 2.4 percent for the June 2008-2009 period, the largest 12-month drop since the index was first published in December 2003.
Read the full report and view all of the data tables by clicking on the link below:
http://www.bls.gov/news.release/ximpim.nr0.htm