Transmission of material in this release is embargoed until                                    USDL-12-0028
8:30 a.m. (EST) Friday, January 13, 2012

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                           U.S. IMPORT AND EXPORT PRICE INDEXES - DECEMBER 2011

U.S. import prices edged down 0.1 percent in December, the U.S. Bureau of Labor Statistics reported 
today, after rising 0.8 percent the previous month. In December, declining prices for fuels more than offset a 
0.1 percent rise in nonfuel prices. Export prices also decreased in December, falling 0.5 percent following a 
0.1 percent advance in November.


Imports
 	
All Imports: Import prices resumed a downward trend, declining 0.1 percent following a 0.8 percent upturn 
in November. The price index for overall imports rose 8.5 percent in 2011, driven by a 9.2 percent increase 
for the index over the first five months of the year. 2011 was the third consecutive year that import prices 
rose, advancing 5.3 percent and 8.6 percent, respectively in 2010 and 2009, after declining 10.1 percent in 
2008.   

Fuel Imports: Fuel prices fell 0.5 percent in December after rising 3.7 percent in November. In December, 
lower prices for both petroleum and natural gas, down 0.4 percent and 4.9 percent, respectively, each 
contributed to the overall decline. Despite falling 3.4 percent since April, overall fuel prices advanced 25.2 
percent in 2011 as a 27.4 percent rise in petroleum prices more than offset a 9.4 percent drop in natural gas 
prices. Fuel prices previously advanced 14.2 percent in 2010 and 62.2 percent in 2009.    

All Imports Excluding Fuel: The price index for nonfuel imports ticked up 0.1 percent in December 
following 0.2 percent decreases in each of the two previous months. In December, higher prices for each of 
the major finished goods categories led nonfuel import prices up despite lower prices for nonfuel industrial 
supplies and materials and foods, feeds, and beverages. Nonfuel import prices advanced 3.4 percent over the 
past year after rising 3.0 percent in 2010. Higher prices for nonfuel industrial supplies and materials; foods, 
feeds, and beverages; and finished goods all contributed to the 2011 increase in nonfuel prices.          

Table A. Percent changes

Exports

All Exports: Prices for overall exports declined 0.5 percent in December, following a 0.1 percent advance in 
November and a 2.0 percent decrease in October. In December, falling prices for both agricultural exports 
and nonagricultural exports factored into the decrease in export prices. The price index for overall exports 
rose 3.6 percent in 2011 after rising 6.5 percent in 2010 and 3.4 percent in 2009. 

Agricultural Exports: The price index for agricultural exports fell 2.6 percent in December, driven by lower 
prices for corn, soybeans, and wheat, down 8.2 percent, 4.0 percent, and 7.8 percent, respectively. 
Agricultural prices advanced 0.8 percent in 2011 despite falling 7.4 percent in the final quarter of the year. 
Agricultural prices rose 20.5 percent in 2010 and 9.2 percent in 2009 in contrast to the relatively small 
increase in 2011. The rise in agricultural prices in 2011 was driven by a 28.1 percent increase in vegetable 
prices and a 7.9 percent advance in corn prices.       

All Exports Excluding Agriculture: Nonagricultural prices fell 0.2 percent in December, led by lower 
prices for nonagricultural supplies and materials. Prices for nonagricultural exports rose 4.0 percent in 2011 
after a 5.1 percent increase the previous year and a 2.9 percent advance in 2009.   
 				

                                     SELECTED DECEMBER HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices edged down 
0.1 percent in December led by a 0.7 percent drop in chemicals prices. In contrast, prices for nonfuel 
industrial supplies and materials rose 6.8 percent in 2011, driven by higher prices for both chemicals and 
metals.           

Finished Goods: Prices for each of the major finished goods categories advanced in December and overall 
in 2011. Consumer goods prices rose 0.2 percent for the month and 3.2 percent in 2011, the largest calendar-
year increase since a 3.5 percent advance in 1990. Prices for capital goods increased 0.2 percent in 
December, and advanced 0.9 percent over the past year. The price index for automotive vehicles ticked up 
0.1 percent in December, and increased 3.7 percent in 2011, the largest calendar-year rise since a 3.9 percent 
advance in 1993.         
 
Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages fell 0.4 percent in 
December, driven by a 4.8 percent decline in vegetable prices. In contrast, foods, feeds, and beverages 
prices rose 6.3 percent over the past 12 months, led by a 41.4 percent jump in coffee prices in 2011.   

Imports by Locality of Origin: The price indexes for imports from China, Mexico, and Japan all ticked up 
0.1 percent in December, and each advanced in 2011, up 3.6 percent, 5.8 percent, and 2.3 percent, 
respectively. The 3.6 percent increase in import prices from China in 2011 was the largest calendar-year 
advance in the index since the index was first published in December 2003, and followed a 0.8 percent 
increase in 2010. In contrast, prices for imports from Canada fell 0.4 percent in December and the price 
index for imports from the European Union decreased 0.2 percent.    

Transportation Services: Import air passenger fares advanced 1.6 percent in December and 5.7 percent 
over the past year. The December increase was led by higher Asian and Latin American/Caribbean fares. 
Import air freight prices fell for the fourth consecutive month, declining 0.6 percent in December. Despite 
those declines, the index rose 4.0 percent in 2011.    

Export Prices
 
Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies 
and materials fell 0.6 percent in December, led by a 2.9 percent drop in fuel prices that more than offset a 
1.7 percent increase in prices for nonferrous metals. Despite decreasing 4.3 percent during the last three 
months of 2011, nonagricultural industrial supplies and materials prices rose 7.9 percent for the year.       
  
Finished Goods: Finished goods prices were mixed in December. Consumer goods prices ticked up 0.1 
percent, automotive vehicle prices edged down 0.1 percent, and prices for capital goods recorded no change. 
Each of the major finished goods categories advanced in 2011, with consumer goods prices rising 3.6 
percent, automotive vehicle prices 2.6 percent, and capital goods prices 0.7 percent.              

Transportation Services: Export air passenger fares increased 1.7 percent in December, driven by higher 
Asian and Latin American/Caribbean fares. The index for export air passenger fares rose 10.8 percent in 
2011. Export air freight prices ticked up 0.1 percent in December, and advanced 12.6 percent over the past 
year.
		
Import and Export Price Index data for January 2012 are scheduled for release on Tuesday, February 
14, 2012 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.