The U.S. Import Price Index fell 0.3 percent in February, the U.S. Bureau of Labor Statistics reported on March 16. The decrease was led by a 1.9 percent downturn in fuel prices, which more than offset a 0.2 percent advance in non-fuel prices. Export prices fell 0.5 percent in February after advancing 0.7 percent in each of the previous two months.
Imports
All Imports: In February, import prices decreased for the first time since a 0.6 percent decline in July, falling 0.3 percent. The February downturn followed a 1.3 percent advance in January and was driven by a turnaround in fuel prices. Despite the February decline, import prices advanced 11.2 percent for the year ended in February after decreasing 12.7 percent for the February 2008-09 period.
Fuel Imports: Import fuel prices countered an upward trend in February, falling 1.9 percent following a 4.9 percent rise in January. A 2.2 percent decline in petroleum prices was slightly offset by a 2.6 percent increase in natural gas prices. Over the past year, the price index for petroleum increased 81.3 percent and natural gas prices rose 16.3 percent, driving overall fuel prices up 70.8 percent for the same period. The 12-month increase in fuel prices followed a 49.8 percent drop for the February 2008-09 period.
All Imports Excluding Fuel: Prices for non-fuel imports rose for the seventh consecutive month, advancing 0.2 percent. The increase was led by higher prices for non-fuel industrial supplies and materials. Lower prices for foods, feeds and beverages, capital goods, and consumer goods mitigated the overall advance. Over the past 12 months, non-fuel import prices increased 2.0 percent.
Exports
All Exports: Export prices decreased for the first time in five months, falling 0.5 percent in February. The February drop was the largest monthly decline since the index fell 0.7 percent in March 2009. Lower agricultural prices accounted for approximately 65 percent of the overall decline. Despite the February decrease, the price index for overall exports rose 3.1 percent over the past 12 months.
Agricultural Exports: The price index for agricultural exports fell 3.8 percent in February, following a 1.3 percent advance in January. Lower prices for soybeans, corn, and wheat led the downturn in agricultural prices. For the year ended in February, agricultural prices rose 2.3 percent, led by a 33.0 percent rise in nut prices and a 28.9 percent increase in cotton prices.
All Exports Excluding Agriculture: Non-agricultural prices declined 0.2 percent in February, the first decrease in 11 months. Lower prices for non-agricultural industrial supplies and materials and capital goods contributed to the overall decline in February. The price index for non-agricultural export prices increased 3.3 percent for the year ended in February.
Import Prices
Non-fuel Industrial Supplies and Materials: Prices for non-fuel industrial supplies and materials increased 1.0 percent in February after rising 1.6 percent in January. Rising prices for metals and lumber led the advances this month.
Finished Goods: Import finished goods prices were virtually unchanged in February, as the price indexes for capital goods and consumer goods each decreased 0.1 percent and the price index for automotive vehicles was unchanged. The decrease in capital goods prices was led by a 1.4 percent drop in prices for measuring, testing and control instruments.
Foods, Feeds and Beverages: The price index for foods, feeds and beverages decreased for the first time since a 1.1 percent decline in July, edging down 0.1 percent. Vegetables and food oils, which fell 2.1 percent and 2.7 percent, respectively, were the primary contributors to the February decline.
Imports by Locality of Origin: Import prices from China and Japan declined in February, each falling 0.1 percent. Lower fuel prices contributed to February decreases in import prices from Mexico and the European Union. The price index for imports from Mexico declined 0.7 percent while import prices from the European Union edged down 0.1 percent. In contrast, import prices from Canada rose 0.1 percent.
Transportation Services: Import air passenger fares fell 3.5 percent in February after decreasing 3.2 percent in January. Lower Asian and European fares contributed to the decline. The price index for import air freight also decreased in February, falling 0.3 percent. The decline was led by a 0.7 percent decrease in Asian air freight prices.
Export Prices
Non-agricultural Industrial Supplies and Materials: Non-agricultural industrial supplies and materials prices fell 0.5 percent in February, the first decrease since a 0.1 percent drop in July. Lower prices for petroleum were partly offset by higher prices for chemicals.
Finished Goods: Prices for the major finished goods categories were mixed in February. The price indexes for consumer goods and automotive vehicles rose 0.3 percent and 0.1 percent, respectively, while prices for capital goods fell 0.3 percent. The drop in capital goods prices was led by a 1.1 percent decline in prices for computers, peripherals, and semiconductors.
Transportation Services: Export air passenger fares decreased 7.7 percent in February following a 3.4 percent increase the previous month. The decline was led by lower Asian and Latin American fares. In contrast, the price index for export air freight rose 0.4 percent in February after advancing 0.3 percent in January.
