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                            U.S. IMPORT AND EXPORT PRICE INDEXES - AUGUST 2010

U.S. import prices increased 0.6 percent in August, the U.S. Bureau of Labor Statistics reported today, after 
rising 0.1 percent the previous month. Higher fuel and nonfuel prices contributed to the overall advance. 
Export prices rose 0.8 percent in August after declining 0.2 percent in July and 0.7 percent in June.


Imports

All Imports: Import prices increased for the second consecutive month in August, rising 0.6 percent 
following a comparatively modest 0.1 percent advance in July. The price index for overall imports rose 4.1 
percent for the year ended in August, the smallest 12-month advance since a 3.4 percent rise for the 
November 2008-09 period.

Fuel Imports: Approximately 58 percent of the overall increase in import prices in August was attributable 
to a 1.7 percent advance in fuel prices. The August increase in fuel prices followed a 1.0 percent rise the 
previous month and was led by a 2.1 percent increase in petroleum prices which more than offset a 3.5 
percent decline in natural gas prices. Prices for fuel rose 9.1 percent over the past 12 months; an 8.5 percent 
increase in petroleum prices and a 25.0 percent jump in natural gas prices each contributed to the overall 
advance.   

All Imports Excluding Fuel: The price index for nonfuel prices also rose in August, increasing 0.3 percent 
following decreases of 0.2 percent in July and 0.5 percent in June. The August increase was primarily driven 
by higher prices for finished goods and food, feeds, and beverages. Nonfuel prices advanced 2.9 percent 
over the past year. In contrast to the August increase, the annual advance was led by rising nonfuel 
industrial supplies and materials prices, up 13.0 percent for the August 2009-10 period.   


Table A. Percent changes

Exports

All Exports: Export prices resumed an upward trend in August, increasing 0.8 percent after declining the 
two previous months. The August increase was the largest monthly advance since a 1.1 percent rise in April 
and higher prices for both nonagricultural exports and agricultural exports each contributed to the rise in 
overall export prices. The price index for overall exports increased 4.1 percent over the past 12 months. 

Agricultural Exports: Agricultural prices rose 4.2 percent in August, the largest monthly increase since a 
similar 4.2 percent advance in June 2009. The August increase was driven by a 31.1 percent surge in wheat 
prices and a 9.8 percent advance in the price index for soybeans and soybean by-products. The increase in 
agricultural prices in August led the 6.4 percent advance for the index over the past year.

All Exports Excluding Agriculture: The price index for nonagricultural exports rose 0.5 percent in August 
following declines of 0.2 percent in July and 0.8 percent in June. The increase was led by a 1.6 percent 
advance in the price index for nonagricultural industrial supplies and materials. Nonagricultural prices 
increased 3.9 percent for the year ended in August.
 					


                                       SELECTED AUGUST HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices ticked up 0.1 
percent in August after falling 1.1 percent in July. An increase in chemicals prices more than offset a decline 
in building materials prices. The price index for unfinished metals, which rose 25.2 percent over the past 
year, was unchanged in August.     

Finished Goods: Prices for each of the major finished goods categories rose in August. The price indexes 
for consumer goods and capital goods rose 0.2 percent while automotive vehicle prices increased 0.3 
percent.  The increase in capital goods prices was led by a 0.4 percent rise in prices for capital goods 
excluding computers which more than offset a 0.2 percent drop in computer prices.  
 
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices rose 2.2 percent in August, the largest 
one-month advance for the index since a 2.9 percent increase in March 2008. Increasing prices for 
vegetables, meat, and food oils, up 5.2 percent, 4.5 percent, and 6.8 percent, respectively, all contributed to 
the overall August advance.   

Imports by Locality of Origin: The price indexes for import prices from Canada and from Mexico each 
advanced 0.7 percent in August while prices for imports from the European Union rose 0.3 percent. Higher 
petroleum prices contributed to the increases. Import prices from Japan rose 0.2 percent in August after 
recording no change in July.  The price index for imports from China remained unchanged in August 
following a 0.1 percent uptick the previous month.

Transportation Services: Import air passenger fares fell for the second consecutive month in August, 
falling 4.1 percent after a 1.3 percent decline in July. A 5.9 percent decrease in European fares and a 4.5 
percent drop in Asian fares each contributed to the overall decline. In contrast, import air freight prices rose 
1.3 percent following decreases of 1.1 percent in July and 0.9 percent in June.


Export Prices
 
Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and 
materials rose 1.6 percent in August after falling 0.6 percent the previous month. The increase was led by a 
5.6 percent advance in fuel prices, while higher prices for metals and chemicals also contributed to the 
increase. The price index for nonagricultural industrial supplies and materials increased 12.1 percent over the 
past year. 
 
Finished Goods: Finished goods prices were mixed overall in August. Consumer goods prices fell 0.3 
percent following a 0.3 percent increase in July. Automotive vehicles prices edged up 0.1 percent in August 
while the price index for capital goods was unchanged in August.      

Transportation Services: Export air passenger fares increased 0.6 percent in August, driven by a 20.3 
percent jump in Asian fares which more than offset a 6.8 percent drop in European fares and a 3.9 percent 
decline in Latin American/Caribbean fares. The price index for export air freight prices also rose 0.6 percent 
in August after declining 1.3 percent in July. 
		
Import and Export Price Index data for September 2010 are scheduled for release on Wednesday, 
October 13, 2010 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 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).  Flat Files and the FTP server are available for users requiring access 
to either a large volume of time series data or other 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 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.