Transmission of material in this release is embargoed until                          USDL-15-0016
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                        U.S. IMPORT AND EXPORT PRICE INDEXES - DECEMBER 2014

The price index for U.S. imports fell 2.5 percent in December following a 1.8-percent drop in November 
and a 1.4-percent decline in October, the U.S. Bureau of Labor Statistics reported today. Each of the 
monthly decreases was driven by lower fuel prices. U.S. export prices declined 1.2 percent in December, 
after decreasing 0.8 percent the previous month.

Imports

All Imports: U.S. import prices fell 2.5 percent in December, the largest 1-month decline since a 4.6-
percent drop in December 2008. Import prices have not recorded a monthly advance since rising 0.3 percent 
in June and fell 7.3 percent over the second half of 2014. The price index for imports decreased 5.5 percent 
overall in 2014, the largest calendar-year drop since falling 10.1 percent in 2008. 

Fuel Imports: Fuel prices declined 15.1 percent in December following an 8.7-percent decrease in 
November and a 6.7-percent drop in October. The December decrease was led by a 16.6-percent decline in 
petroleum prices which more than offset a 15.3-percent increase in natural gas prices. Overall fuel prices fell 
28.6 percent in 2014, the largest calendar-year decrease since a 47.0-percent drop in 2008. Petroleum prices 
decreased 30.1 percent for the year ended in December while prices for natural gas declined 1.6 percent 
over the same period. 

All Imports Excluding Fuel: The price index for nonfuel imports edged down 0.1 percent in December, 
after falling 0.3 percent the previous month. The December drop was driven by lower prices for consumer 
goods, nonfuel industrial supplies and materials, and capital goods which more than offset rising foods, 
feeds, and beverages prices. Overall nonfuel prices recorded no change in 2014 following a 1.2-percent 
decline the previous year. In 2014, lower prices for capital goods, automotive vehicles, and nonfuel 
industrial supplies and materials offset higher foods, feeds, and beverages prices and prices for consumer 
goods. 

Table A. Percent change in Import and Export Price Indexes, selected categories

Exports

All Exports: Prices for overall exports declined 1.2 percent in December following a 0.8-percent decrease 
in November and a 0.9-percent drop in October. In December, both agricultural and nonagricultural export 
prices contributed to the 1.2-percent decrease, which was the largest monthly decline since the index fell 1.7 
percent in June 2012. The price index for U.S. exports decreased 3.2 percent in 2014, the largest calendar-
year drop since the index declined 3.4 percent in 1998. 

Agricultural Exports: The price index for agricultural exports decreased 0.7 percent in December, after 
rising 0.4 percent the previous month. The December drop was led by a 4.6-percent decline in meat prices 
and a 3.4-percent decrease in soybean prices. Agricultural export prices fell 4.9 percent in 2014, driven by 
lower prices for soybeans and corn. 

All Exports Excluding Agriculture: Nonagricultural prices fell 1.2 percent in December following a 1.0-
percent drop in November and a 0.7-percent decline in October. The December drop was led by declining 
prices for nonagricultural industrial supplies and materials and consumer goods. The price index for 
nonagricultural exports decreased 2.9 percent in 2014, the largest calendar-year decline since the index was 
first published in March 1985. The 2014 drop was driven by a 24.2-percent decrease in export fuel prices.


                              SELECTED DECEMBER HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Prices for imports from China recorded no change for the fourth 
consecutive month in December and edged down 0.1 percent over the past 12 months. The decline over the 
past year followed a 0.7-percent decrease in 2013 and a 0.6-percent drop in 2012. Import prices from Japan 
fell 0.5 percent in December, the largest 1-month drop since the index fell 0.8 percent in April 2013. The 
price index for imports from Japan declined 1.4 percent in 2014, after decreasing 3.4 percent in 2013. Prices 
for imports from Canada fell 4.7 percent in December, while import prices from Mexico declined 1.5 
percent. Each index was led by falling fuel prices. The price index for imports from the European Union 
also declined in December, dropping 0.4 percent. 

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 0.2 
percent in December. The decline was led by lower prices for iron and steel mill products, industrial organic 
chemicals, and aluminum which more than offset a 3.7-percent upturn in gold prices. 

Finished Goods: The major finished goods areas mostly declined in December. Prices for consumer goods 
decreased 0.2 percent, capital goods prices edged down 0.1 percent, and prices for automotive vehicles were 
unchanged. Despite recording no change in December, automotive vehicle prices fell 0.8 percent in 2014, 
after declining 1.4 percent the previous year. 

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices increased 0.9 percent in December, 
driven by a 14.9-percent advance in vegetable prices.

Transportation Services: Import air passenger fares increased 7.9 percent in December following a 1.0-
percent advance in November and a 2.4-percent rise in October. The December increase was led by a 16.2-
percent rise in Asian fares. Overall import air passenger fares advanced 2.7 percent over the past 12 months. 
In contrast, import air freight prices fell 1.8 percent in December and declined 5.6 percent in 2014. 


Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials 
prices fell 3.5 percent in December, after declining 2.6 percent in November. The decrease was primarily 
led by a 10.4-percent drop in export fuel prices. 

Finished Goods: Consumer goods prices decreased 0.2 percent in December while the price indexes for 
capital goods and for automotive vehicles each recorded no change. In 2014, the major finished goods 
categories were mostly up. Capital goods prices rose 0.7 percent and prices for automotive vehicles 
advanced 0.5 percent. In contrast, consumer goods prices decreased 0.6 percent. 

Transportation Services: Export air passenger fares rose 7.9 percent in December, after declining 5.0 
percent the previous month. Higher Asian, Latin American/Caribbean, and European fares all contributed to 
the December advance. Despite the December increase, overall export air passenger prices declined 2.3 
percent in 2014. The price index for export air freight decreased 1.7 percent in December and increased 5.7 
percent over the past year. 

Import and Export Price Index data for January 2015 are scheduled for release on Friday, February 
13, 2015 at 8:30 a.m. (EST). 

                                            TECHNICAL NOTE


Import and Export Merchandise and Services Price Indexes -- All indexes use a modified Laspeyres 
formula and are not seasonally adjusted.  Price indexes are reweighted annually, with a two-year lag in 
the weights.  Published series use a base year of 2000=100 where possible.  More detailed index series 
and additional information may be obtained at http://www.bls.gov/mxp, or by calling (202) 691-7101.

Merchandise Goods Classification Systems -- The merchandise price indexes are published using three 
classification systems.  Items are classified by end use according to the Bureau of Economic Analysis 
Classification System, by industry according to the North American Industry Classification System 
(NAICS), and by product category according to the Harmonized System (HS).  While classification by 
end use and product category are self-explanatory, some notes are in order for classifying items by 
industry.  In the NAICS imports and exports tables, items are classified by output industry, not input 
industry.  As an example, NAICS import index 326 (plastics and rubber products manufacturing) 
include outputs such as manufactured plastic rather than inputs such as petroleum.  The NAICS 
classification structure also matches the classification system used by the PPI (Producer Price Index) to 
produce the NAICS primary products indexes.

Import Price Indexes -- Products have been classified by the Harmonized Tariff Schedule of the United 
States Annotated (TSUSA).  Import prices are based on U.S. dollar prices paid by the U.S. importer.  
The prices are generally either "free on board" (f.o.b.) foreign port or "cost, insurance, and freight" 
(c.i.f.) U.S. port transaction prices, depending on the practices of the individual industry.  The index for 
crude petroleum is calculated from data collected by the U.S. Department of Energy.  

Export Price Indexes -- Products have been classified by the Harmonized Schedule B classification 
system of the U.S. Bureau of the Census.  The prices used are generally either "free alongside ship" 
(f.a.s.) factory or "free on board" (f.o.b.) transaction prices, depending on the practices of the individual 
industry.  Prices used in the grain index, excluding rice, are obtained from the U.S. Department of 
Agriculture.

Services Price Indexes -- Starting in September 2008 the Import Air Passenger Fares Indexes represent 
changes in the average revenue per passenger received by foreign carriers from U.S. residents and are 
calculated from data obtained from an airline consulting service.  These data include tickets sold by 
travel agencies and travel websites.  Tickets sold directly by the airlines are excluded, as are frequent 
flyer tickets generally.  Starting in January 2008 the Export Air Passenger Fares Indexes represent 
changes in the average revenue per passenger received by U.S. carriers from foreign residents and are 
calculated from data collected directly from airlines. These data include frequent flyer tickets and those 
sold by consolidators. Taxes and fees are included in the Import Air Passenger Fares Index and 
excluded from the Export Air Passenger Fares Index. The Air Freight Indexes are calculated from data 
collected directly from airlines. These data exclude mail and passenger baggage. The scope of the service 
being priced is the movement of freight from airport to airport only, and does not include any ground 
transportation or port service. The Air Freight Indexes are presented using two definitions: Balance of 
Payments (which represent transactions between U.S. and foreign residents) and International (which 
represent transactions inbound to and outbound from the U.S.). Fact sheets specifying detailed 
information for each services industry are available at http://www.bls.gov/mxp under "MXP 
Publications."

Import Indexes by Locality of Origin -- Prices used in these indexes are a subset of the data collected 
for the Import Price Indexes.  Beginning with January 2002, the indexes are defined by locality of origin 
using a nomenclature based upon the North American Industry Classification System (NAICS).  
Nonmanufactured goods are defined as NAICS 11 and 21 and manufactured goods are defined as 
NAICS 31-33. 

Revision Policy -- To reflect the availability of late reports and corrections by respondents, monthly data 
may be revised in each of the three months after original publication.  After three months, no further 
data revisions take place.  So, for example, data released in the January release will be subject to revision 
in the releases for February, March, and April.

Uses of the Data -- The primary use of the indexes is to deflate trade statistics, notably the foreign trade 
sector of the National Income and Product Accounts constructed by the Department of Commerce.  
Other published indexes are useful for general market analysis.  For trade in international services, 
Balance of Payments indexes are used for deflating National Income and Product Accounts, while 
International indexes are more appropriate for market analysis.  Merchandise and services indexes also 
can be used to study U.S. competitiveness and to compute price elasticities, and the merchandise import 
indexes by country or region of origin are useful in terms of trade analysis.

E-Mail Subscription -- The U.S. Import and Export Price Indexes news release is available through an 
e-mail subscription service at (http://www.bls.gov/bls/list.htm).

Additional Information -- More detailed data are available on the Import/Export Price Indexes home 
page at (http://www.bls.gov/mxp). For technical assistance in using the BLS Internet site, send e-mail to 
(labstat.helpdesk@bls.gov).  For Import/Export Price Index data requests, send e-mail to 
(mxpinfo@bls.gov). 

Information from this release will be made available to sensory impaired individuals upon request.  Voice 
phone: 202-691-5200; Federal Relay Service: 1-800-877-8339.