August 2005 U.S. IMPORT AND EXPORT PRICE INDEXES

October 6, 2005 | Industry News | 0 Comments »

U.S. IMPORT AND EXPORT PRICE INDEXES
- AUGUST 2005 -

The price index for U.S. imports increased 1.3 percent in August, the
Bureau of Labor Statistics of the U.S. Department of Labor reported today.
Rising petroleum prices led the increase for the third consecutive month.
U.S. export prices declined 0.1 percent in August after a modest 0.1 percent
upturn in July.

Hurricane Katrina

Hurricane Katrina struck Florida and the Gulf Coast after the August
survey reference period and therefore did not affect the August import and
export price indexes.

Percent changes in import and export price indexes
by End Use category
not seasonally adjusted see full release

Import Goods

Import prices continued a steady upward trend in August, increasing 1.3
percent following advances of 1.2 percent and 0.8 percent in June and July,
respectively. The August increase was the largest monthly gain since a 2.2
percent increase in March, and import prices rose 7.6 percent over the past
year. Following the pattern of the prior two months, the August increase was
driven by higher petroleum prices, which rose 7.1 percent. August marked the
third consecutive month that the price index for petroleum imports recorded
its highest level since the index was first published in 1982. Petroleum
prices rose 42.5 percent over the past 12 months. Nonpetroleum prices were
unchanged in August after decreasing 0.2 percent in each of the three
preceding months. Despite those recent declines, nonpetroleum prices
increased 1.8 percent for the year ended in August.

August nonpetroleum industrial supplies and materials prices increased
0.2 percent after rising 0.4 percent in July. Higher natural gas prices more
than compensated for lower prices for metals and building materials. The
price index for nonpetroleum industrial supplies and materials increased 5.6
percent over the August 2004-2005 period.

In contrast, consumer goods prices and foods, feeds, and beverages
prices dipped in August. Prices for consumer goods fell 0.2 percent for the
second consecutive month but rose 1.1 percent over the past 12 months.
Foods, feeds, and beverages prices decreased a modest 0.1 percent in August
following larger declines of 1.2 percent and 0.7 percent in June and July,
respectively. Despite decreasing in each of the past five months, prices for
foods, feeds, and beverages increased 5.5 percent over the past year.

The price indexes for capital goods and for automotive vehicles were
unchanged in August. Capital goods prices decreased 0.4 percent over the
past 12 months while prices of automotive vehicles rose 0.9 percent for the
same period.

Export Goods

Prices of exports declined for the third time in the past four months,
edging down 0.1 percent in August. Even with the recent decreases, export
prices rose 3.1 percent over the past 12 months. Prices for both
agricultural exports and nonagricultural exports contributed to the August
decline, decreasing 0.6 percent and 0.1 percent, respectively. The decline
in agricultural prices was the second consecutive monthly decrease after the
index increased each of the four months prior to July. Agricultural prices
advanced 6.6 percent for the year ended in August. The modest drop in
nonagricultural prices followed a 0.1 percent uptick in July, and prices of
nonagricultural exports rose 2.7 percent over the past year.

The August decrease in nonagricultural exports was led by a second
consecutive 0.4 percent decline in prices for capital goods, which make up
nearly 40 percent of overall exports. As was the case in July, the drop in
capital goods prices was driven by lower prices for computers, peripherals
and semiconductors. The price index for capital goods decreased 0.2 percent
over the past 12 months.

In contrast, the price index for nonagricultural industrial supplies and
materials increased 0.3 percent in August, as higher prices for fuel and
chemicals more than offset lower metals prices. The August increase in
nonagricultural industrial supplies and materials prices followed a 0.8
percent rise in July, and the index rose 9.2 percent over the past year.

Prices for automotive vehicles and for consumer goods were unchanged in
August. Over the past 12 months, automotive vehicle prices increased 0.9
percent and consumer goods prices rose 0.4 percent.

Imports by Locality of Origin

Import prices from Canada and from the European Union both rose in
August, increasing 1.3 percent and 0.1 percent, respectively. In each case,
a petroleum-driven advance in nonmanufactured goods more than offset lower
prices for manufactured goods. Prices of imports from Canada rose 5.9
percent for the year ended in August, and import prices from the European
Union increased 4.1 percent over the same period.

The price index of imports from Mexico rose 1.2 percent in August, the
eighth consecutive month the index increased. The advance was the largest
monthly gain since March and was also led by higher petroleum prices. Import
prices from Mexico rose 9.8 percent over the past 12 months.

In contrast, prices of imports from Japan and from China declined in
August, falling 0.2 percent and 0.1 percent, respectively. The price index
of imports from Japan decreased for the third time in the past four months,
but increased 0.1 percent over the past year. Import prices from China fell
for the third month in a row and declined 1.3 percent for the year ended in
August.


Import and Export Services

Import air passenger fares declined 0.8 percent in August after rising
10.2 percent and 3.0 percent in June and July, respectively. The index
increased 3.8 percent over the past 12 months. In contrast, export air
passenger fares increased 5.2 percent, led by a 16.6 percent jump in Asian
fares. Export air passenger fares rose 11.0 percent over the past year.

Import and Export Price Index data for September are scheduled for release on
October 13 at 8:30 A.M. (E.D.T.).

Source: "Bureau of Labor Statistics": www.bls.gov
Click here for the Full Release