U.S. import prices rose 0.9 percent in October, the U.S. Department of Labor’s Bureau of Labor Statistics reported on November 10, after edging down 0.1 percent in September. Higher fuel and non-fuel prices contributed to the increase in October. Export prices advanced for the third consecutive month in October, rising 0.8 percent.
Imports
All Imports: The price index for overall imports increased 0.9 percent in October, the largest monthly advance for the index since a 1.1 percent advance in April. The October rise was also only the second one-month upturn since the April increase. Despite the downward trend between May and September, import prices rose 3.6 percent over the past 12 months.
Fuel Imports: A 3.0 percent advance in fuel prices in October accounted for approximately two thirds of the increase in overall import prices. The October rise in fuel prices was the largest monthly advance since a 4.4 percent increase in January and was driven by a 3.3 percent advance in petroleum prices, which more than offset a 2.3 percent drop in the price index for natural gas. Fuel prices increased 7.9 percent for the year ended in October, while petroleum and natural gas prices rose 7.6 percent and 9.5 percent, respectively, over the same period.
All Imports Excluding Fuel: Non-fuel prices rose 0.3 percent for the third consecutive month in October. Rising prices for non-fuel industrial supplies and materials and foods, feeds and beverages led the advance, while prices for finished goods were mixed. The price index for non-fuel imports increased 2.5 percent over the past 12 months, driven by an 11.8 percent jump in the non-fuel industrial supplies and materials prices.
Exports
All Exports: Export prices increased 0.8 percent in October following similar advances of 0.6 percent and 0.8 percent in September and August, respectively. Higher prices for agricultural and non-agricultural exports contributed to the increases in each of the three months. The price index for overall exports rose 5.8 percent over the past year, the largest 12-month advance since a 7.0 percent jump between September 2007 and September 2008.
Agricultural Exports: Prices for agricultural exports rose for the third consecutive month in October, rising 2.5 percent following advances of 2.3 percent and 4.2 percent the previous two months. Higher prices for corn, soybeans and cotton, up 8.7 percent, 4.0 percent and 6.8 percent, respectively, more than offset a 5.3 percent downturn in wheat prices. Sharp increases in wheat prices had driven the advances in agricultural prices in August and September. The price index for agricultural exports rose 15.7 percent for the October 2009-2010 period.
All Exports Excluding Agriculture: Non-agricultural prices advanced 0.7 percent in October and 4.8 percent over the past year. Both increases were led by rising prices for non-agricultural industrial supplies and materials, up 1.8 percent in October and 13.8 percent over the past year.
SELECTED OCTOBER HIGHLIGHTS
Import Prices
Non-fuel Industrial Supplies and Materials: Prices for non-fuel industrial supplies and materials rose 1.9 percent in October after advancing 1.0 percent the previous month. Rising prices for both unfinished metals, up 3.1 percent and chemicals, up 2.1 percent, each contributed to the October increase. The increase in unfinished metals prices was led by higher prices for copper, aluminum, gold and other precious metals. Chemical prices were primarily driven by a 5.6 percent increase in fertilizer prices.
Finished Goods: Finished goods prices were mixed in October. Prices for automotive vehicles rose 0.4 percent, an increase that was in part attributable to year-end model changeovers. In contrast, consumer goods prices fell 0.5 percent, led by falling prices for medicinal, dental and pharmaceutical products and household goods. Capital goods prices were unchanged as declining computer prices offset higher prices for non-computer capital goods.
Foods, Feeds and Beverages: The price index for foods, feeds and beverages rose 1.1 percent in October despite a 4.6 percent downturn in coffee prices. Coffee prices, up 29.9 percent over the past 12 months, were the main contributor to a 9.8 percent rise in foods, feeds and beverages for the year ended in October. The October increase was led by higher prices for fruit and food oils.
Imports by Locality of Origin: Import prices from China rose 0.4 percent in October, the largest one-month advance for the index since a 0.8 percent increase in July 2008. The price indexes of imports from Canada, Mexico and Japan also rose in October, up 1.4 percent, 0.6 percent and 0.2 percent, respectively. In contrast, prices of imports from the European Union edged down 0.1 percent in October.
Transportation Services: Import air passenger fares rose 4.8 percent in October, after declining in each of the previous three months. Higher European, Asian and Latin American/Caribbean fares all contributed to the October increase. Despite the recent declines prior to October, import air passenger fares rose 14.9 percent over the past year. Import air freight prices advanced 0.9 percent in October after a 0.2 percent rise in September and a 1.3 percent increase in August.
Export Prices
Non-agricultural Industrial Supplies and Materials:The price index for non-agricultural industrial supplies and materials advanced 1.8 percent in October. The increase was led by higher prices for metals, fuels and chemicals, up 4.3 percent, 2.9 percent and 1.6 percent, respectively.
Finished Goods: Prices for consumer goods and automotive vehicles rose in October, increasing 0.9 percent and 0.2 percent, respectively. Those advances were offset in part by a 0.1 percent drop in capital goods prices that was driven by a 1.0 percent decline in computer prices.
Transportation Services: In contrast to import air passenger fares, export air passenger fares fell 1.1 percent in October. The decrease followed an 8.1 percent drop in September and was led mostly by a 6.2 percent decline in Asian air passenger fares. The index for overall export air passenger fares jumped 23.1 percent over the past 12 months despite the recent declines. Export air freight prices increased 0.5 percent in October and 4.1 percent over the past year.