The U.S. Import Price Index advanced 1.0 percent in June, the Bureau
of Labor Statistics of the U.S. Department of Labor reported July 13, after a
similar 1.1 percent increase the previous month. Higher petroleum prices
drove the June rise. Export prices also continued to trend upward in June,
increasing 0.3 percent following a 0.2 percent advance in May.
Percent changes in import and export price indexes
by End Use category
-not seasonally adjusted-
IMPORTS EXPORTS
Month Non- Agri- Nonagri-
All Petroleum petroleum All cultural cultural
Imports Imports Imports Exports Exports Exports
2006
June 0.1 -1.1 0.4 0.7 2.6 0.6
July 0.8 3.6 0.0 0.4 1.9 0.2
August 0.5 1.0 0.5 0.4 0.9 0.5
September -2.2 -11.0 0.1 -0.4 -0.5 -0.4
October -2.5 -10.4 -0.6 -0.3 1.0 -0.5
November 0.4 -1.6 1.0 0.4 4.4 0.1
December 1.1 4.0 0.5 0.6 2.4 0.5
2007
January -1.2 -6.6 -0.1 0.4 0.6 0.5
February 0.4 1.7 0.0 0.8 2.8 0.6
March 1.6 8.5 r 0.3 0.7 2.1 0.6 r
April 1.4 6.8 r 0.3 0.4 r -1.4 0.5
May 1.1 r 3.7 r 0.5 0.2 r 0.1 r 0.2
June 1.0 4.7 0.2 0.3 2.9 0.1
June 2005-06 7.4 33.7 2.2 4.2 0.2 4.6
June 2006-07 2.3 2.1 2.6 4.1 18.5 2.9
r = revised to reflect late reports and corrections by respondents.
Import Goods
Import prices rose 1.0 percent in June, the fifth consecutive increase for
the index. Petroleum prices were also up for the fifth month in a row,
increasing 4.7 percent in June after a 3.7 percent advance the previous month.
After declining at the end of 2006, the price index for import petroleum rose
28.1 percent from January through June. However, the index was only up 2.1
percent over the past year compared to a 33.7 percent increase over the
previous 12 months. Non-petroleum prices also advanced in June, rising 0.2
percent after advancing 0.5 percent in May. Prices for nonpetroleum imports
increased 2.6 percent for the year ended in June, while overall import prices
rose 2.3 percent for the same period.
The June increase in non-petroleum prices was led by a 0.5 percent rise
in the price index for nonpetroleum industrial supplies and materials, which
had risen 4.3 percent over the three months prior to June. Metal prices, which
drove the increases in March, April, and May, continued to rise, but a
turnaround in building materials prices also contributed to the June increase.
Advances in the price indexes for capital goods, automotive vehicles,
and foods, feeds and beverages also factored into the overall increase in
nonpetroleum import prices. Capital goods prices rose 0.2 percent, the first
increase for the index since a 0.1 percent uptick in December 2006. Prices for
automotive vehicles advanced 0.1 percent for the third consecutive month.
Foods, feeds, and beverages prices edged up 0.2 percent, following increases
of 0.9 percent and 1.4 percent, respectively, in May and April.
The price index for consumer goods was unchanged in June, the fifth
consecutive month the index has recorded little change.
Export Goods
Export prices increased 0.3 percent in June following a 0.2 percent rise
in May and a 0.4 percent advance in April. The June rise was mostly led by a
2.9 percent increase in agricultural prices, which resumed an upward trend
after declining 1.4 percent in April and recording little movement in May. A
sharp rise in soybean prices led the June advance, although higher prices for
corn, meat, and agricultural industrial supplies and materials contributed as
well. Prices for agricultural exports rose 18.5 percent over the past year.
Non-agricultural prices also increased in June by 0.1 percent. For the June
2006-2007 period, non-agricultural prices rose 2.9 percent while overall export
prices increased 4.1 percent.
The June advance in nonagricultural prices was driven mostly by a 0.3
percent rise in the price index for non-agricultural industrial supplies and
materials. Higher chemicals and fuel prices were the largest contributors to the
increase.
Prices for each of the major finished goods categories exhibited little
movement in June, with the price index for automotive vehicles ticking up 0.1
percent, while prices for capital goods and consumer goods were each
unchanged. Consumer goods prices had increased 0.3 percent and 0.6 percent,
respectively, in May and April.
Imports by Locality of Origin
Import prices from China increased 0.3 percent for the second
consecutive month and were up 0.6 percent over the past year. The June
increase was the third monthly advance in the past four months, a turnaround
from the declining trend dating back to when the index was first published in
December 2003.
Prices for imports from Mexico, Canada, and the European Union all
increased in June, led in each case by higher petroleum prices. Import prices
from Mexico rose 1.9 percent for the month and 5.8 percent for the year ended
in June. The price index for imports from Canada increased 1.3 percent in
June and 4.1 percent over the past 12 months. June prices for imports from the
European Union advanced 0.4 percent. The index increased 2.1 percent for the
June 2006-2007 period.
Import prices from Japan also rose in June, edging up 0.1 percent.
Despite the increase, the index declined 0.7 percent over the past year.
Import and Export Services
Export travel and tourism prices, which are lagged one month, were unchanged
in May after increasing 0.2 percent, 2.2 percent and 2.4 percent over the previous
three months.
Import air passenger fares jumped 13.4 percent in June, driven by advances of
17.9 percent and 16.7 percent, respectively, in European and Asian fares. In
contrast, export air passenger fares declined 1.5 percent in June after rising 3.9
percent in May. Despite the June decrease, the index for export air passenger fares
rose 5.7 percent over the past year.
Prices for both import and export air freight fell in June, declining 0.2
percent and 0.4 percent, respectively. For the year ended in June, import air
freight prices decreased 2.1 percent while export air freight prices advanced 0.9
percent.
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