Transmission of material in this release is embargoed until                                      USDL-17-1127
8:30 a.m. (EDT) Tuesday, August 15, 2017

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Media contact:         (202) 691-5902 * PressOffice@bls.gov


                                U.S. IMPORT AND EXPORT PRICE INDEXES - JULY 2017                                

Prices for U.S. imports edged up 0.1 percent in July, the U.S. Bureau of Labor Statistics reported today, led 
by higher fuel prices which more than offset lower prices for nonfuel imports. The July increase in import 
prices followed declines in each of the 2 previous months. U.S. export prices advanced 0.4 percent in July, 
after decreasing 0.2 percent in June.

Imports

All Imports: Import prices advanced 0.1 percent in July, after a 0.2-percent decrease in June and a 0.1-
percent drop in May. The price index for U.S. imports rose over the past year, increasing 1.5 percent. Prices 
for U.S. imports have risen on an over-the-year basis for 9 consecutive months; the last decrease was a 0.2-
percent drop in October 2016.

Fuel Imports: Fuel prices rose 0.5 percent in July following declines of 2.6 percent in June, 0.9 percent in 
May, and 0.4 percent in April. The July increase was the first monthly advance since the index rose 0.3 
percent in February. A 0.7-percent rise in petroleum prices contributed to the advance in July, more than 
offsetting a 5.0-percent drop in natural gas prices. Import fuel prices increased 8.9 percent over the past 
year, driven by an 8.3-percent rise in petroleum prices and a 20.4-percent advance in natural gas prices. 
Import fuel prices have not recorded a 12-month decline since a 3.7-percent fall for the period ended 
September 2016.

All Imports Excluding Fuel: In contrast, nonfuel import prices edged down 0.1 percent in July, the first 
monthly decrease since a 0.1-percent drop in January. The last time nonfuel import prices fell more than 0.1 
percent on a monthly basis was a 0.2-percent decline in June 2016. Lower prices for nonfuel industrial 
supplies and materials and automotive vehicles more than offset price increases for foods, feeds, and 
beverages and capital goods. Consumer goods prices recorded no change in July. Nonfuel import prices 
advanced 0.7 percent over the past year; the index has not decreased on a 12-month basis since falling 0.2 
percent in November. The over-the-year increase was driven by rising prices for nonfuel industrial supplies 
and materials; foods, feeds, and beverages; capital goods; and consumer goods, which more than offset 
declining automotive vehicles prices.

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

Exports

All Exports: The price index for U.S. exports advanced 0.4 percent in July, matching a 0.4-percent rise in 
December 2016. The increases are the largest monthly advances since a 0.8-percent rise in June 2016. 
Rising prices for both agricultural and nonagricultural exports contributed to the July increase. Prices for 
U.S. exports rose 0.8 percent over the past year, continuing an upward trend; U.S. export prices have not 
recorded an over-the-year decrease since falling 0.2 percent in November 2016.

Agricultural Exports: Export agricultural prices advanced 2.1 percent in July, after dropping 1.4 percent in 
June and 1.6 percent in May. The July increase was the largest advance since the index rose 2.5 percent in 
June 2016. Increasing prices for wheat, soybeans, meat, and fruit contributed to the monthly advance, more 
than offsetting lower vegetables prices. Despite the monthly rise, agricultural prices recorded an overall 1.4-
percent decline for the year ended in July. Price decreases for soybeans and fruit led the yearly decline, 
despite higher prices for meat exports over the past 12 months.

All Exports Excluding Agriculture: The price index for nonagricultural exports rose 0.3 percent in July.  
Export prices for nonagricultural industrial supplies and materials; capital goods; and consumer goods 
increased, driving the monthly advance despite lower prices for automotive vehicles exports. 
Nonagricultural export prices increased 1.0 percent over the year ended in July, led by higher prices for 
nonagricultural industrial supplies and materials and capital goods. Export prices for consumer goods and 
automotive vehicles fell over the past 12 months.

                                            SELECTED JULY HIGHLIGHTS                                            

Import Prices

Imports by Locality of Origin: Prices for imports from China ticked up 0.1 percent in July, after falling 
0.2 percent over the previous 3 months. Import prices from China declined 0.9 percent over the past 12 
months, continuing a trend of 12-month price decreases since the index rose 0.1 percent in October 2014. 
The price index for imports from Japan fell 0.3 percent in July and increased 0.4 percent over the past year. 
Prices for imports from Canada advanced 0.6 percent in July. In contrast, the price indexes for imports from 
the European Union and Mexico fell 0.2 percent and 0.1 percent, respectively.

Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials 
declined 0.4 percent in July, after recording no change in June. Lower prices for nonmonetary gold, other 
precious metals, and chemicals drove the decrease, despite higher building materials prices.

Finished Goods: Prices for the major finished goods categories were mixed in July. The price index for 
import capital goods rose 0.1 percent, driven by higher prices for nonelectrical machinery. Automotive 
vehicles prices fell 0.2 percent for the second consecutive month. Import prices for consumer goods 
recorded no change in July.

Foods, Feeds, and Beverages: Import foods, feeds, and beverages prices increased in July, rising 0.6 
percent. Import prices for vegetables and feedstuff rose, driving the monthly advance despite lower prices 
for imported fruit.

Transportation Services: The price index for import air passenger fares declined 2.8 percent in July. Asian 
fares led the drop, decreasing 6.5 percent after a 10.9-percent rise in June. European fares also contributed 
to the monthly decrease in July, falling 6.1 percent. Latin American/Caribbean fares rose 2.0 percent in July. 
The index for import air passenger fares fell 2.6 percent over the past year. Import air freight prices 
increased 10.3 percent in July, the largest increase since the index was first published in December 2005. 
The index rose 22.1 percent over the past 12 months. The over-the-year advance was the largest since a 
22.4-percent increase for the year ended in June 2010.

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and 
materials increased 0.5 percent in July, after declining 0.1 percent in June. A 1.0-percent rise in prices for 
petroleum and a 1.1-percent advance in prices for chemicals drove the increase. 

Finished Goods: Export finished goods prices were mostly up in July. Prices for capital goods edged up 0.1 
percent for the third consecutive month. Industrial engines prices drove the July increase, rising 0.9 percent. 
The price index for consumer goods rose 0.2 percent in July. Automotive vehicles export prices edged down 
0.1 percent in July, led by a 0.3-percent drop in parts and accessories prices.

Transportation Services: Export air passenger fares rose 4.9 percent in July, following a 4.8-percent 
increase in June. Price increases for Latin American/Caribbean and European fares contributed to the July 
advance. The export air passenger fares index rose 4.3 percent over the past 12 months. Prices for export air 
freight dropped 2.5 percent in July. Despite the monthly decrease, the export air freight price index rose 3.1 
percent between July 2016 and July 2017.
		
Import and Export Price Index data for August 2017 are scheduled for release on Tuesday, September 19, 2017 
at 8:30 a.m. (EDT).

                                         TECHNICAL NOTE


Announcement - The Bureau of Labor Statistics is utilizing new index estimation and review systems 
for the import and export price indexes effective with the release of the June 2017 price data on July 18, 
2017. The new estimation and index review systems, the first major improvement to the existing 
systems in over 20 years, are redesigned, state-of-the-art systems with improved flexibility and review 
capabilities. The changes to the systems will not have a significant effect on the estimates of price 
change for the U.S. import and export price indexes.

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 2-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 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 Producer Price Index (PPI) 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 indexes and excluded from 
the export air passenger fares 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 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 3 months after original publication. After 3 months, no further data 
revisions take place. For example, data first published 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 (NIPA) 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 NIPA, 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.

Email Subscription - The U.S. import and export price indexes news release is available through an 
email subscription service at www.bls.gov/bls/list.htm. 

Additional Information - More detailed data are available on the Import/Export Price Indexes home 
page at www.bls.gov/mxp. For import and export price indexes data requests, send an email 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.