Transmission of material in this release is embargoed until			            USDL-09-1099
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                             U.S. IMPORT AND EXPORT PRICE INDEXES - AUGUST 2009

The U.S. Import Price Index increased 2.0 percent in August, the U.S. Bureau of Labor Statistics reported 
today, driven primarily by a 9.8 percent advance in fuel prices. Import prices fell 0.7 percent in July. Prices 
for U.S. exports rose 0.7 percent in August after falling 0.3 percent the previous month.

Imports

All Imports: Import prices increased for the fifth time in the past six months in August, rising 2.0 percent 
for the month. Despite the recent advances, the price index for overall imports fell 15.0 percent over the past 
year and the decline was led by a 21.0 percent decrease for the index between August 2008 and January 
2009. Import prices subsequently rose 7.6 percent from January 2009 to August 2009.   

Fuel Imports: Volatile fuel prices were the primary contributor to both the August increase and 12-month 
decrease in overall import prices. The price index for import fuel advanced 9.8 percent in August and 
declined 39.6 percent for the August 2008-2009 period, though prices rose 61.5 percent from January to 
August.  

All Imports Excluding Fuel: Prices for imports excluding fuel increased 0.4 percent in August following a 
0.2 percent decline the previous month. The August increase was the largest monthly advance since a 0.6 
percent increase in July 2008 and was led by higher prices for industrial supplies and materials. Despite the 
increase in August, prices for imports excluding fuel remain down 5.1 percent over the past 12 months, 
similar to the 5.3 percent decrease recorded for the year ended in July, which was the largest 12-month drop 
since the index was first published in December 2001.


Table A. Percent changes

Exports 

All Exports: The price index for overall exports increased 0.7 percent in August, led upward mostly by a 
0.8 percent advance in nonagricultural export prices. The rise followed a 0.3 percent decline in July and 
resumed the upward trend recorded in April, May, and June. Export prices fell 6.1 percent for the 12 months 
ended in August despite the recent advances, driven by a 7.3 percent drop in the final quarter of 2008.

Agricultural Exports: Agricultural prices ticked up 0.2 percent in August after a 4.9 percent decline in 
July. Falling wheat prices were more than offset by higher prices for fruit and corn. Prices for export 
agricultural goods decreased 14.1 percent over the past year, a decline that was led by a drop in prices for 
corn, wheat, meat, and soybeans. 

All Exports Excluding Agriculture: The price index for nonagricultural exports rose 0.8 percent in 
August, the largest one-month rise since the index increased 0.9 percent in July 2008. The advance was 
driven by a 2.3 percent rise in nonagricultural industrial supplies and materials prices. Prices for each of the 
major finished goods areas also contributed to the overall increase. August marked the fifth consecutive 
month the price index for nonagricultural prices advanced, but the index declined 5.3 percent for the August 
2008-2009 period. 

 

                                           SELECTED AUGUST HIGHLIGHTS


Import Prices

Foods, Feeds, and Beverages: Import foods, feeds, and beverages prices rose 1.7 percent in August, the 
largest monthly increase since a 2.0 percent advance in December 2008. The August advance was led by a 
tunaround in green coffee prices which were down in July. Higher prices for meat, fruit, and vegetables 
also contributed to the increase in foods, feeds, and beverages prices in August.

Nonfuel Industrial Supplies and Materials: A 1.3 percent jump in nonfuel industrial supplies and 
materials prices was the largest contributor to higher nonfuel prices in August. The advance was driven by 
higher metals prices and was the biggest one-month increase since July 2008. 

Finished Goods: Finished goods prices were mixed in August. Automotive vehicles prices rose 0.2 percent 
and capital goods prices ticked up 0.1 percent. In contrast, consumer goods prices edged down 0.2 percent 
led by lower prices for import televisions and video receivers.

Transportation Services: The indexes for both air freight prices and air passenger fares decreased in 
August. Air freight prices edged down 0.2 percent while air passenger fares decreased 2.2 percent.    

Imports by Locality of Origin: Higher fuel prices impacted a couple of the major locality of origin indexes 
in August. The price indexes for imports from Canada and from Mexico each rose for the month, increasing 
2.7 percent and 2.3 percent, respectively. Prices of imports from China and from Japan also rose in August, 
increasing 0.2 percent and 0.1 percent, respectively.


Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and 
materials advanced 2.3 percent in August, driven by higher prices for fuel and metals. Prices for aluminum, 
copper, and precious metals all increased in August. 

Finished Goods: Prices for each of the major finished goods areas advanced in August. Led by higher 
computer prices, capital goods prices ticked up 0.1 percent in August. Prices for automotive vehicles also 
rose a modest 0.1 percent while consumer goods prices increased 0.3 percent.

Transportation Services: In contrast to imports, the export price index for export air freight and export air 
passenger fares increased in August. Prices for export air freight rose 0.5 percent and export air passenger 
fares jumped 9.6 percent, led by a sharp rise in Asian fares.

________		
Import and Export Price Index data for September 2009 are scheduled for release on Wednesday, 
October 14, 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 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 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.