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                          U.S. IMPORT AND EXPORT PRICE INDEXES - DECEMBER 2009

The U.S. Import Price Index was unchanged in December, the U.S. Bureau of Labor Statistics reported 
today, as a decline in fuel prices offset rising nonfuel prices. Import prices increased 8.6 percent in 2009. 
U.S. export prices advanced 0.6 percent in December and rose 3.4 percent in 2009.


Imports

All Imports: Import prices were unchanged in December following increases in each of the four previous 
months. Prices for U.S. imports trended up over most of 2009, rising 8.6 percent overall for the year. In 
2009, prices rebounded from a 10.1 percent decline in 2008, the largest calendar-year drop since the index 
was first published in 1982. Fuel prices were the primary contributor to both the decline in overall import 
prices for 2008 and the subsequent increase in 2009.

Fuel Imports: Fuel prices fell 1.4 percent in December after advancing 2.9 percent in October and 7.1 
percent in November. The decrease in December, the first since a 1.3 percent drop in September, was led by 
a 2.0 percent drop in petroleum prices which more than offset a 6.9 percent increase in natural gas prices. 
Despite the December drop, fuel prices jumped 61.4 percent in 2009 following a 47.0 percent decline the 
previous year. Petroleum prices rose 78.4 percent for the year ended in December while natural gas prices 
fell 28.4 percent. 

All Imports Excluding Fuel: The price index for nonfuel import prices increased 0.4 percent for the fifth 
consecutive month in December. Higher prices for nonfuel industrial supplies and materials, food, capital 
goods, and automotive vehicles all contributed to the overall advance in December. Nonfuel prices, which 
fell 1.8 percent in the first quarter of 2009, also rose 0.4 percent over the past 12 months. The index 
advanced 1.2 percent in 2008.  


Table A. Percent changes

Exports
 
All Exports: Export prices increased 0.6 percent in December after rising 0.9 percent the previous month. 
Rising prices for both agricultural exports and nonagricultural exports contributed to the increase. The price 
index for U.S. exports advanced 3.4 percent in 2009. The 2009 increase in export prices followed a 2.9 
percent decline for 2008.

Agricultural Exports: Agricultural prices rose 2.0 percent in December following a 4.0 percent advance in 
November. Rising wheat prices led the December increase. Although the price trend for agricultural exports 
was mixed in 2009, the index increased 9.6 percent overall after falling 10.9 percent in 2008. The 2008 drop 
was the largest calendar-year decline in agricultural prices since the index began in 1985. Higher prices for 
soybeans and corn drove the increase in overall export prices in 2009. 

All Exports Excluding Agriculture: The price index for nonagricultural exports advanced 0.5 percent in 
December after rising 0.6 percent in November. The December increase was driven by higher prices for 
nonagricultural industrial supplies and materials. Prices for nonagricultural exports increased 2.9 percent over 
the past year following a 2.2 percent decline in 2008. 




                                        SELECTED DECEMBER HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices rose 1.9 
percent in December, primarily driven up by a 3.9 percent advance in the price index for unfinished metals. 
A 19.4 percent increase in unfinished metals prices in 2009 was also the main contributor to a 2.4 percent 
increase for the price index of nonfuel industrial supplies and materials for the year. 

Finished Goods: Prices for import finished goods ticked up in December, as the price indexes for capital 
goods and automotive vehicles advanced 0.1 percent and consumer goods prices were unchanged. For the 
year ended in December, prices for capital goods and consumer goods fell 0.5 percent and 0.2 percent, 
respectively, while prices for automotive vehicles advanced 1.2 percent.
 
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices rose 0.9 percent in December and 1.0 
percent in 2009.  Rising coffee prices led both the December and 2009 advances while a drop in fruit and 
vegetable prices over the past year tempered the overall increase in foods, feeds, and beverages in 2009.   

Imports by Locality of Origin: Import prices from Japan and China both increased in December, rising 0.3 
percent and 0.1 percent, respectively. In 2009, prices for imports from Japan advanced 1.9 percent, while the 
price index for imports from China declined 1.9 percent. Led in part by higher petroleum prices over the past 
year, imports from Canada, Mexico, and the European Union all rose in 2009, increasing 6.0 percent, 4.5 
percent, and 2.2 percent, respectively.  

Transportation Services: Import air passenger fares advanced 3.3 percent for the month. Despite the 
increase, the index fell 3.2 percent over the past 12 months. The price index for import air freight rose 7.5 
percent in December and 18.3 percent in 2009.  Both advances were driven by higher Asian air freight 
prices, up 10.1 percent in December and 24.2 percent over the past year.  


Export Prices

Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies 
and materials increased 1.9 percent in December and 6.9 percent over the past 12 months. The December 
advance was led by higher prices for metals, fuels and chemicals.   

Finished Goods: Prices for each of the major finished goods categories were unchanged in December. In 
2009, capital goods prices rose 1.9 percent. Contributing to the increase was a 0.8 percent rise in computers, 
peripherals, and semi-conductors prices, the first calendar year advance for the index since a 0.1 percent rise 
in 1988 and the largest calendar year increase since the index advanced 6.1 percent in 1981. The price 
indexes for consumer goods and automotive vehicles also rose in 2009, increasing 0.4 percent and 0.2 
percent, respectively.  

Transportation Services: Export air passenger fares rose 7.3 percent in December, but remained down 7.7 
percent in 2009. The price index for export air freight advanced 0.9 percent in December after rising 0.6 
percent the previous month. Despite the recent increases, the index fell 8.8 percent over the past 12 months. 
		
Import and Export Price Index data for January 2010 are scheduled for release on Wednesday, 
February 17, 2010 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.