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                                   U.S. IMPORT AND EXPORT PRICE INDEXES
                                              - APRIL 2009 -

   The U.S. Import Price Index rose 1.6 percent in April, the Bureau of Labor Statistics of the U.S. 
Department of Labor reported today.  A 15.4 percent increase in import petroleum prices more than 
offset a 0.4 percent decline in the price index for nonpetroleum imports.  Export prices also rose in 
April, increasing 0.5 percent.

                              Percent changes in import and export price indexes
                                              by End Use category
                                          - not seasonally adjusted -

Import Goods
   
   Import prices increased 1.6 percent in April after rising 0.2 percent in March.  The April advance 
was led by a 15.4 percent rise in petroleum prices, which increased for the third consecutive month after 
declining in each of the previous six months.  In contrast, nonpetroleum prices decreased for the ninth 
consecutive month, falling 0.4 percent in April.  For the year ended in April, petroleum prices fell 49.8 
percent and prices for nonpetroleum imports declined 5.6 percent.  Overall import prices declined 16.3 
percent over the past year, the largest annual decline since the index was first published in September 
1982.  
    
   The continued decline in nonpetroleum prices was led by a 2.3 percent drop in nonpetroleum 
industrial supplies and materials prices.  That decrease was driven by a sharp fall in natural gas prices, 
although lower prices for chemicals and some metals also contributed to the decline.  The price index for 
nonpetroleum industrial supplies and materials fell 21.0 percent over the past 12 months, the largest 
annual decrease since the index was first published in September 1982.
   
   Prices for the major finished goods categories were mixed in April.  Import automotive vehicle 
prices edged down 0.1 percent in April after decreasing 0.2 percent in March.  In contrast, prices for 
consumer goods and capital goods increased in April, rising 0.2 percent and 0.1 percent, respectively. 
   
   Prices for foods, feeds, and beverages decreased 0.1 percent in April as lower fruit prices more 
than offset higher coffee prices.  The April drop followed a 0.7 percent decline in March.  


Export Goods 

   Export prices increased 0.5 percent in April because of higher prices for both agricultural and 
nonagricultural exports.  The price index for all exports decreased 6.8 percent for the year ended in 
April, matching the annual decrease in March as the largest 12-month decline since the index was first 
published in September 1983.  Agricultural prices rose 3.6 percent in April, led by increases for 
soybeans, corn, and wheat.  The April increase notwithstanding, agricultural export prices decreased 
17.6 percent over the past year.  Nonagricultural prices edged up 0.3 percent in April but fell 5.4 percent 
over the past 12 months.  
   
   The rise in nonagricultural prices was led by a 0.3 percent increase in the index for 
nonagricultural industrial supplies and materials.  Higher prices for fuels more than offset lower prices 
for chemicals.  Despite the April increase, nonagricultural industrial supplies and materials decreased 
18.4 percent for the April 2008-2009 period, the largest annual decrease since the index was first 
published in September 1989.
   
   Prices for capital goods and consumer goods also contributed to the increase in nonagricultural 
prices.  The price index for capital goods rose 0.4 percent, driven by higher prices for aircraft parts and 
semiconductors.  Consumer goods prices advanced 0.1 percent.  For the year ended in April, prices for 
capital goods and consumer goods increased 1.1 percent and 0.2 percent, respectively.  
   
   The price index for automotive vehicles was unchanged in April after rising 0.1 percent in 
March.  Automotive vehicle prices advanced 0.7 percent over the past year.  
   
   
Imports by Locality of Origin 
	
   Prices for imports from China fell for the eighth consecutive month, decreasing 0.5 percent in 
April.  Import prices from China fell 1.1 percent for the year ended in April.  
    
   Import prices from the European Union and from Japan also declined in April, falling 0.2 percent 
and 0.1 percent, respectively.  Prices for imports from the European Union declined for the third 
consecutive month and decreased 6.4 percent over the past year, the largest annual drop since the index 
was first published in December 1990.  The price index for imports from Japan increased 1.4 percent for 
the April 2008-2009 period despite declines in March and April.
   
   In contrast, led by rising petroleum prices, prices for imports from Mexico and from Canada 
increased in April, advancing 1.0 percent and 0.2 percent for the month.  Over the past 12 months, 
however, import prices from Mexico fell 13.6 percent while import prices from Canada fell 22.3 percent, 
the largest annual decline since the index was first published in December 1990.


Import and Export Services

   Import air passenger fares decreased 1.3 percent in April following a 4.7 percent drop the 
previous month.  The April decrease was again led by lower European fares, which fell 1.3 percent after 
decreasing 7.8 percent in March.  The index for import air passenger fares fell 7.1 percent for the year 
ended in April, the largest annual decrease since the index was first published in March 1988.  Export air 
passenger fares also decreased in April, falling 4.0 percent as lower fares from Asia more than offset 
higher prices from the Latin America/Caribbean region and Europe.  Fares for export air passengers 
decreased 11.1 percent over the past 12 months, the largest annual decrease since the index was first 
published in September 1986.
	
   Import air freight prices fell 1.6 percent in April, as both European and Asian air freight prices 
declined.  The price index for import air freight decreased 13.3 percent over the past year, the largest 
annual decline since the index was first published in September 1990.  Prices for export air freight 
declined 3.5 percent in April and 11.0 percent for the April 2008-2009 period, the largest monthly and 
annual declines since the index was first published in December 1996.

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 May 2009 are scheduled for release on June 12, 2009 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 -- 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 excluded from both indexes. 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 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.