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                              U.S. IMPORT AND EXPORT PRICE INDEXES
                                         - JANUARY 2008 -

   The U.S. Import Price Index increased 1.7 percent in January, the Bureau of Labor Statistics of 
the U.S. Department of Labor reported today, led by a 5.5 percent increase in petroleum prices.  The 
overall increase followed a 0.2 percent decline in December.  U.S. export prices advanced 1.2 percent in 
January following a 0.4 percent rise in December.
   
   - Due to budget constraints, beginning with the January 2008 release, the price series for
     export postsecondary education services, export travel and tourism services, inbound ocean
     liner freight, and inbound tanker freight will no longer be published.
    
                        Percent changes in import and export price indexes
                                       by End Use category
                                   - not seasonally adjusted -

Import Goods
   
   The January increase in overall imports resumed the upward trend of the past year after a 0.2 
percent decrease in December.  The index, which had risen 3.1 percent in November and 1.5 percent in 
October, is up 13.7 percent over the past 12 months, the largest year-over-year increase since the index 
was first published in September 1982.  The 5.5 percent increase in petroleum prices was the largest 
contributor to the January increase, although nonpetroleum prices also advanced, rising 0.6 percent.  
Petroleum prices also led the overall increase in import prices over the past year, rising 66.9 percent over 
that period.  The increase in nonpetroleum prices in January followed increases of 0.3 percent in 
December and 0.6 percent in November.  Over the past 12 months, prices for nonpetroleum imports rose 
3.6 percent.  
   
   The January increase in nonpetroleum prices was primarily driven by a 2.2 percent rise in the 
price index for nonpetroleum industrial supplies and materials.  That increase followed advances of 0.7 
percent in December and 2.3 percent in November and was led by higher prices for chemicals and 
natural gas.  

   The price indexes for foods, feeds, and beverages and consumer goods also increased in January.  
Prices for foods, feeds, and beverages rose 3.1 percent in January and 10.9 percent for the year ended in 
January.  Consumer goods prices advanced 0.3 percent for the month and 1.6 percent over the past year.  
   
   In contrast, capital goods prices fell 0.2 percent in January as a decline in computer prices more 
than offset a 0.2 percent increase in prices for capital goods excluding computers.  Prices for automotive 
vehicles were unchanged for the month.  


Export Goods 

   The 1.2 percent increase in export prices was the largest one-month gain in the index since a 1.2 
percent increase in January 1989.  Higher prices for both agricultural exports and nonagricultural exports 
contributed to the advance.  Agricultural prices rose 5.0 percent in January after a 2.8 percent increase in 
December.  Higher prices for corn and soybeans drove the increase in agricultural prices.  Over the past 
12 months, the price index for agricultural exports rose 28.9 percent. 
   
   Nonagricultural prices also increased in January, rising 0.8 percent following a 0.3 percent 
advance in December.  The index rose 4.8 percent over the past year.  A 2.2 percent increase in the price 
index for nonagricultural industrial supplies and materials was the main contributor to the January 
advance.  Higher prices for chemicals and steelmaking materials led the advance.  For the year ended in 
January, nonagricultural industrial supplies and materials prices rose 12.0 percent.   
   
   Prices for capital goods and automotive vehicles also increased in January, advancing 0.2 
percent and 0.1 percent, respectively.  For the January 2007-2008 period, capital goods prices rose 1.5 
percent while the price index for automotive vehicles increased 1.0 percent.  
   
   In contrast, the price index for export consumer goods prices edged down 0.1 percent for the 
month.  



Imports by Locality of Origin 
	
   Prices for imports from China rose for the ninth consecutive month in January, increasing 0.8 
percent, the largest monthly advance since the index was first published in December 2003.  Import 
prices from China increased 3.3 percent over the past year after falling 0.9 percent from January 2005-
2006.
   
   Price indexes for imports from the European Union and from Canada increased in January, rising 
1.1 percent and 0.1 percent, respectively.   Higher fuel prices contributed to the increases.  For the year 
ended in January, import prices from the European Union rose 4.1 percent while import prices from 
Canada rose 11.3 percent.
    
   Prices for imports from Mexico and from Japan also advanced in January, rising 2.8 percent and 
0.1 percent, respectively.  Rising petroleum prices led the advance in prices for imports from Mexico, 
which increased 19.9 percent over the past year.   The price index for imports from Japan edged up 0.2 
percent over the past 12 months, the first 12-month advance in the index since October 2005.
   
   
Import and Export Services

   Import air passenger fares fell 2.1 percent in January after increasing 5.5 percent in December.  
The January decrease was led by an 11.2 percent drop in Asian fares.  Over the past year, import air 
passenger fares increased 7.8 percent.  Export air passenger fares increased in January, rising 7.9 percent.  
The index advanced 18.6 percent over the past year.  
	
   Prices for import air freight edged down 0.1 percent in January following a 3.0 percent advance 
the previous month.  Lower air freight prices from Asia more than offset higher prices from Europe.  
Overall import air freight prices rose 7.6 percent for the year ended in January.  The price index for 
export air freight rose 3.0 percent in January and 11.5 percent over the past 12 months.


CONTENTS OF RELEASE

This news release includes the following tables:

Table 1    U.S. Import Price Indexes, by End Use
Table 2    U.S. Export Price Indexes, by End Use
Table 3    U.S. Import Price Indexes, by NAICS
Table 4    U.S. Export Price Indexes, by NAICS
Table 5    U.S. Import Price Indexes, by Harmonized System
Table 6    U.S. Export Price Indexes, by Harmonized System
Table 7    U.S. Import Price Indexes, by Locality of Origin
Table 8    U.S. International Price Indexes for Selected Transportation Services
-------------------------------------------------------------------
Import and Export Price Index data for February are scheduled for release on March 13 at 
8:30 A.M. (EDT)

                                          TECHNICAL NOTE

Import and Export Merchandise and Services Price Indexes -- All indexes use a modified Laspeyres 
formula and are not seasonally adjusted.  Price indexes for merchandise goods 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 -- The Import Air Passenger Fares Indexes are calculated from data obtained 
from a commercial airline reservation system.  These data exclude frequent flyer tickets and those sold 
by consolidators.  The Export Air Passenger Fares Indexes are calculated from data collected directly 
from airlines.  These data include frequent flyer tickets and those sold by consolidators.  Taxes and fees 
are excluded from both the Import and Export Air Passenger Fares Indexes.  The Air Freight Indexes are 
calculated from data collected directly from companies.  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 "Publications and Other Documentation."

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 IPP news release is available through an e-mail subscription service at 
(http://www.bls.gov/mxp) or (http://www.bls.gov/bls/newsrels.htm).
 
Additional Information -- More detailed IPP data are available on the IPP home page at 
(http://www.bls.gov/mxp).  Flat Files and the FTP server are available for users requiring access to 
either a large volume of time series data or other IPP-related documentation. The FTP site can be 
accessed at ftp://ftp.bls.gov.   For technical assistance in using the BLS Internet site, send e-mail to 
(labstat.helpdesk@bls.gov).  For IPP 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.