The U.S. Import Price Index rose 0.7 percent in March, the U.S. Bureau of Labor Statistics reported on April 13. The increase was attributable to higher prices for both fuel and non-fuel imports and followed a 0.2 percent decline in February. Export prices also rose 0.7 percent in March after declining 0.4 percent the previous month.
Imports
All Imports: In March, import prices increased for the seventh time in the past eight months, rising 0.7 percent. The March upturn followed a 0.2 percent decline in February and was largely driven by a turnaround in fuel prices, which accounted for approximately 80 percent of the ncrease. Import prices advanced 11.4 percent for the year ended in March after decreasing 14.9 percent for the March 2008-2009 period.
Fuel Imports: Import fuel prices resumed an upward trend in March, rising 2.9 percent following a 1.2 percent drop in February. A 4.0 percent increase in petroleum prices was slightly offset by a 12.4 percent decline in natural gas prices, which decreased for the first time in six months. Over the past year, the price index for petroleum increased 70.2 percent and natural gas prices rose 19.0 percent, driving overall fuel prices up 63.3 percent for the same period. The 12-month increase in fuel prices followed a 50.7 percent drop for the March 2008-2009 period.
All Imports Excluding Fuel: Prices for non-fuel imports rose for the eighth consecutive month, advancing 0.2 percent. The increase was led by higher prices for non-fuel industrial supplies and materials, consumer goods, and foods, feeds, and beverages. Lower prices for capital goods and automotive vehicles partly offset the overall advance. Over the past 12 months, non-fuel import prices rose 2.7 percent, the largest 12-month increase since the index went up 4.8 percent for the October 2007-2008 period.
Exports
All Exports: Export prices increased for the fourth time in the past five months, rising 0.7 percent in March. Higher non-agricultural prices accounted for approximately 75 percent of the overall increase. The price index for overall exports rose 4.6 percent over the past 12 months.
Agricultural Exports: The price index for agricultural exports rose 2.1 percent in March, following a 3.8 percent decline in February. Higher prices for cotton, soybeans, corn, meat, and wheat all contributed to the upturn in agricultural prices. For the year ended in March, agricultural prices rose 8.2 percent, led by a 55.9 percent increase in cotton prices and a 45.6 percent rise in nut prices.
All Exports Excluding Agriculture: Non-agricultural prices resumed an upward trend in March following a 0.2 percent downturn in February, increasing 0.6 percent. Higher prices for non-agricultural industrial supplies and materials and capital goods contributed to the overall increase in March. The price index for non-agricultural export prices increased 4.3 percent for the year ended in March.
SELECTED MARCH HIGHLIGHTS
Import Prices
Non-fuel Industrial Supplies and Materials: Prices for non-fuel industrial supplies and materials increased 0.6 percent in March after advancing 1.0 percent in February. Rising prices for chemicals and iron and steel mill products, which increased 1.4 percent and 4.5 percent, respectively, led the advances this month.
Finished Goods: Prices for the major finished goods categories were mixed in March, as the price indexes for capital goods and automotive vehicles decreased 0.4 percent and 0.2 percent, respectively, while the price index for consumer goods increased 0.3 percent. The decrease in capital goods prices was led by a 3.6 percent drop in prices for semiconductors.
Foods, Feeds and Beverages: The price index for foods, feeds and beverages rose 1.4 percent in March after falling 0.5 percent in February. Vegetables and meat, which advanced 11.2 percent and 5.4 percent, respectively, were the primary contributors to the March increase.
Imports by Locality of Origin: Import prices from China and Canada declined in March, each falling 0.1 percent. In contrast, the price indexes for imports from Mexico and from Japan rose 1.4 percent and 0.3 percent, respectively. Import prices from the European Union were unchanged.
Transportation Services: Import air passenger fares rose 5.3 percent in March after decreasing 3.5 percent in February. Higher European fares led the advance. In contrast, the price index for import air freight decreased in March, edging down 0.1 percent. The decline was led by a 3.7 percent decrease in European air freight prices.
Export Prices
Non-agricultural Industrial Supplies and Materials: Non-agricultural industrial supplies and materials prices increased 1.6 percent in March after declining 0.4 percent in February. Higher prices for petroleum and chemicals, up 5.5 percent and 2.2 percent, respectively, contributed to the March increase.
Finished Goods: Prices for the major finished goods categories were mixed in March. The price index for capital goods rose 0.2 percent, while prices for consumer goods fell 0.1 percent and the price index for automotive vehicles was unchanged. The advance in capital goods prices was led by a 3.1 percent increase in prices for computer peripherals, accessories and parts.
Transportation Services: Export air passenger fares increased 3.3 percent in March following a 7.0 percent decrease the previous month. The advance was led by higher Asian fares. In contrast, the price index for export air freight rose 0.6 percent in March after advancing 0.5 percent in February.