Economic News Release

Transmission of material in this release is embargoed until					USDL-12-1832
8:30 a.m. (EDT) Wednesday, September 12, 2012

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			    U.S. IMPORT AND EXPORT PRICE INDEXES - AUGUST 2012

U.S. import prices rose 0.7 percent in August, the U.S. Bureau of Labor Statistics reported today, after 
declining 0.7 percent the previous month. The August increase was the first advance in overall import prices 
since a 1.4 percent rise in March. Export prices also increased in August, rising 0.9 percent following a 0.4 
percent advance in July. 

Imports
 	
All Imports: Import prices rose 0.7 percent in August, the first monthly increase since March. The August 
advance followed a 4.4 percent decline over the previous four months. In August, higher fuel prices more 
than offset a decrease in the price index for nonfuel imports. Despite the August increase, import prices 
decreased 2.2 percent over the past year. In contrast, import prices had increased 12.9 percent between 
August 2010 and August 2011.  

Fuel Imports: Prices for imported fuel advanced 4.1 percent in August following declines in each of the 
four previous months. Higher prices for petroleum and natural gas, up 4.1 percent and 6.8 percent, 
respectively, each contributed to the August increase in fuel prices. Even with the August increase, fuel 
prices fell 7.4 percent over the past 12 months, led by a 6.4 percent drop in petroleum prices and a 33.2 
percent decrease in natural gas prices.       

All Imports Excluding Fuel: The price index for nonfuel imports continued a recent downward trend, 
falling 0.2 percent after declines of 0.4 percent in July, 0.3 percent in June, and 0.1 percent in May. The 
recent decreases left nonfuel import prices 0.5 percent lower for the year ended in August, the first 12-
month drop for the index since a 1.1 percent decline for the November 2008-09 period. The August decrease 
was led by lower prices for consumer goods, nonfuel industrial supplies and materials, foods, feeds, and 
beverages, and capital goods.      

Table A. Percent changes

Exports

All Exports: Export prices increased 0.9 percent in August following a 0.4 percent advance in July and a 1.7 
percent drop in June. The August increase in overall export prices was the largest monthly rise since the 
index advanced 1.5 percent in March 2011. Higher agricultural and nonagricultural prices each contributed 
to the August increase. For the year ended in August, however, export prices fell 0.9 percent.    

Agricultural Exports: Agricultural prices rose 5.1 percent in August after a 6.3 percent increase in July. 
Both advances were led by higher prices for corn, soybeans, and wheat. In August, corn prices rose 11.1 
percent, soybeans prices 5.6 percent, and wheat prices 9.0 percent. The price index for agricultural exports 
increased 7.7 percent for the year ended in August, as higher prices for soybeans, corn, and wheat more than 
offset lower cotton prices.          

All Exports Excluding Agriculture: Prices for nonagricultural exports advanced 0.4 percent in August 
following a 0.3 percent decline the previous month. Rising prices for nonagricultural supplies and materials 
drove the August increase, more than compensating for declining capital goods and automotive vehicles 
prices. The price index for nonagricultural exports fell 1.9 percent over the past year.  

					SELECTED AUGUST HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Prices for imports from China and from Japan recorded no change in 
August. Import prices from Canada advanced 1.6 percent and prices for imports from Mexico ticked up 0.1 
percent in August, led by higher fuel prices. Despite the August increase, prices for imports from Canada fell 
5.0 percent over the past year, while import prices from Mexico declined 2.9 percent. The price index for 
imports from the European Union fell 0.4 percent as a 0.5 percent drop in prices for manufactured articles 
more than offset higher fuel prices.    

Nonfuel Import Highlights: The price index for nonfuel industrial supplies and materials fell 0.4 percent in 
August after declining 1.8 percent in July. A 1.0 percent drop in unfinished metals prices and a 0.3 percent 
decline in chemicals prices each contributed to the August decrease. Finished goods prices mostly fell in 
August, with consumer goods prices declining 0.3 percent and capital goods prices edging down 0.1 
percent. Prices for automotive vehicles were unchanged in August. Foods, feeds, and beverages prices 
declined 0.9 percent in August, led by a 2.1 percent drop in fish and shellfish prices and a 2.7 percent 
decline in vegetable prices.    

Transportation Services: Import air passenger fares declined 5.5 percent in August after falling 3.2 percent 
the previous month. The August drop was the largest monthly decline since a 5.6 percent decrease in January 
2009, and was led by an 8.0 percent fall in European fares. Despite the recent declines, import air passenger 
fares increased 2.5 percent for the year ended in August. The price index for import air freight decreased 1.6 
percent in August and 6.8 percent over the past year.

Export Prices
 
Nonagricultural Export Highlights: Prices for nonagricultural industrial supplies and materials led the 
increase in nonagricultural prices in August, rising 1.2 percent. A 4.6 percent advance in fuel prices was the 
main contributor to the overall rise in the price index for nonagricultural supplies and materials. In contrast, 
finished goods prices for the most part decreased. Capital goods prices fell 0.2 percent, driven by a 0.5 
percent decline in computers, peripherals, and semiconductor prices, while automotive vehicles prices 
decreased 0.2 percent, led by a 0.4 percent drop in passenger cars prices. The price index for consumer 
goods recorded no change in August.   
 
Transportation Services: Export air passenger fares rose 2.3 percent in August, driven by a 26.4 percent 
jump in the index for Asian fares. The August increase in overall fares followed a 4.8 percent increase in 
July. Despite not recording a monthly decline since a 0.8 percent drop in March, export air passenger fares 
fell 2.2 percent for the year ended in August. Export air freight prices decreased 1.2 percent in August  and 
1.8 percent over the past 12 months. 

Announcement
Beginning with the July Import-Export Price Indexes data released last month, the import price indexes by 
locality of origin were expanded to include price indexes for select industry areas. These new indexes are 
available at http://www.bls.gov/web/ximpim/ippsloor.htm. In total, 249 indexes were added across the 
various localities, including 31 new price indexes for imports from China, and 20 new price indexes for 
imports from the European Union.
		
Import and Export Price Index data for September 2012 are scheduled for release on Thursday, 
October 11, 2012 at 8:30 a.m. (EDT).