Transmission of material in this release is embargoed until                                  USDL-13-0016
8:30 a.m. (EST) Friday, January 11, 2013

Technical information: (202) 691-7101 * MXPinfo@bls.gov * www.bls.gov/mxp
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                          U.S. IMPORT AND EXPORT PRICE INDEXES - DECEMBER 2012

The price index for U.S. imports edged down 0.1 percent in December, the U.S. Bureau of Labor Statistics 
reported today, after declining 0.8 percent the previous month. Falling fuel and nonfuel prices each 
contributed to the December decrease. U.S. export prices also fell 0.1 percent in December following a 0.7 
percent drop in November. 

Imports

All Imports: Import prices declined for the second consecutive month in December after increasing the 
three months prior to November. Overall, import prices fell 1.5 percent in 2012, the first calendar year 
decrease for the index since a 10.1 percent drop in 2008. Import prices had risen 8.5 percent in 2011, 5.3 
percent in 2010, and 8.6 percent in 2009.         

Fuel Imports: The price index for import fuel edged down 0.1 percent in December after declining 2.8 
percent the previous month. The decrease in both months was led by falling petroleum prices, down 0.8 
percent in December and 3.4 percent in November. In contrast, natural gas prices rose 18.4 percent in 
December following an 18.0 percent rise in November. Overall fuel prices fell 6.4 percent in 2012 after 
increasing 24.9 percent the previous year. The decline over the past 12 months was driven by a 7.1 percent 
drop in petroleum prices which more than offset a 14.2 percent increase in natural gas prices.           

All Imports Excluding Fuel: Prices for nonfuel imports also declined 0.1 percent in December following a 
0.2 percent decrease in November. Lower prices for capital goods, consumer goods, and foods, feeds, and 
beverages all contributed to the December decline. Despite the recent decreases, nonfuel import prices 
ticked up 0.1 percent in 2012, after advancing 3.4 percent and 3.0 percent the two previous years. The 2012 
increase was led by a 1.9 percent rise in automotive vehicles prices, as all other major categories either 
recorded declines or no change for the year.  

Table A. Percent changes

Exports 

All Exports: Export prices fell 0.1 percent in December after a 0.7 percent decline the previous month. 
Decreasing nonagricultural prices in December and November more than offset rising prices for agricultural 
exports. Despite the recent declines, the price index for overall exports rose 1.1 percent in 2012. That 
increase followed a 3.6 percent advance in 2011, and was the smallest calendar-year rise since the index 
declined 2.9 percent in 2008.      

Agricultural Exports: Prices for agricultural exports ticked up 0.1 percent for the second consecutive 
month in December. The increases for both December and November were driven by higher fruit prices. 
Agricultural prices increased 12.8 percent in 2012 after rising 1.0 percent the previous year. The 2012 
advance was led by rising prices for soybeans, corn, and wheat, up 31.6 percent, 26.9 percent, and 28.0 
percent, respectively.             

All Exports Excluding Agriculture: The price index for nonagricultural exports fell 0.2 percent in 
December, driven by falling prices for nonagricultural industrial supplies and materials, capital goods, and 
consumer goods. Overall nonagricultural prices declined 0.4 percent in 2012 after rising 4.0 percent in 2011 
and 5.1 percent in 2010.     


                                        SELECTED DECEMBER HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China were unchanged in December and declined 0.7 
percent in 2012. The yearly decrease followed increases of 3.6 percent in 2011 and 0.8 percent in 2010. 
Import prices from the European Union and Mexico fell 0.2 percent in December, while import prices from 
Japan edged down 0.1 percent. The price index for imports from Canada rose 0.3 percent, led by higher 
natural gas prices. For the year, import prices from Canada, the European Union, and Mexico all declined, 
falling 2.5 percent, 1.1 percent, and 3.6 percent, respectively. In contrast, prices for imports from Japan rose 
1.0 percent over the past 12 months.      

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials ticked up 
0.1 percent in December, led by a 7.5 percent increase in prices for agricultural materials. For the year, the 
price index for nonfuel industrial supplies and materials fell 0.8 percent, driven mostly by a 4.9 percent drop 
in unfinished metal prices.    

Finished Goods: Finished goods prices were mostly down in December; capital goods prices fell 0.2 percent 
and prices for consumer goods edged down 0.1 percent. Prices for automotive vehicles remained unchanged 
for the second consecutive month. In 2012, automotive vehicles prices rose 1.9 percent, while prices for 
consumer goods fell 0.1 percent. Capital goods prices were unchanged over the past year.   

Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages fell 0.2 percent in December 
and 1.7 percent over the past 12 months. Lower coffee prices were the largest contributor to the annual 
decline, decreasing 26.8 percent in 2012.     

Transportation Services: Import air passenger fares increased 6.8 percent in December, which helped 
contribute towards an 8.2 percent advance in 2012. A 16.1 percent rise in Asian fares was the largest 
contributor to the December increase, but the advance over the past year was led by a 17.5 percent jump in 
European fares. Import air freight prices decreased 0.7 percent in December as well as over the past 12 
months.  

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural materials declined 0.3 
percent in December. A 0.7 percent drop in fuel prices and a 0.6 percent decrease in chemicals prices were 
the primary contributors to the decline. Nonagricultural industrial supplies and materials prices fell 2.2 
percent over the past year, led by a 6.1 percent drop in fuel prices.   

Finished Goods: Finished goods prices decreased overall in December as capital goods prices and prices for 
consumer goods each edged down 0.1 percent. Automotive vehicles prices were unchanged. In 2012, capital 
goods prices rose 1.0 percent, while automotive vehicles prices advanced 0.9 percent and prices for 
consumer goods were unchanged.     

Transportation Services: Export air passenger fares advanced 6.2 percent in December, led by a 10.9 
percent increase in Asian fares. The index for export air passenger fares rose 1.7 percent over the past year. 
Export air freight prices fell 0.7 percent in December. Despite the decline, prices for export air freight 
increased 1.9 percent in 2012.    

Import and Export Price Index data for January 2013 are scheduled for release on Wednesday, 
February 13, 2013 at 8:30 a.m. (EST).

                                          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.