Transmission of material in this release is embargoed until                      USDL-14-0035
8:30 a.m. (EST) Tuesday, January 14, 2014

Technical information: (202) 691-7101 * MXPinfo@bls.gov * www.bls.gov/mxp
Media contact:	       (202) 691-5902 * PressOffice@bls.gov


                         U.S. IMPORT AND EXPORT PRICE INDEXES - DECEMBER 2013

U.S. import prices recorded no change in December, the U.S. Bureau of Labor Statistics reported today, 
following declines of 0.9 percent in November and 0.6 percent in October. In December, higher fuel prices 
offset declining nonfuel prices. U.S. export prices advanced 0.4 percent in December, after edging up 0.1 
percent the previous month. 

Imports

All Imports: Import prices were unchanged in December, after falling 1.6 percent over the previous 2 
months. Decreasing fuel prices drove the overall declines in import prices in November and October. The 
price index for U.S. imports decreased 1.3 percent in 2013 following a 2.0 percent decline in 2012. Falling 
fuel and nonfuel prices contributed to the 2013 decline in overall import prices. 

Fuel Imports: The price index for import fuel increased 0.4 percent in December, after declining 4.3 
percent in November and 3.3 percent in October. The December upturn in fuel prices was led by a 15.8 
percent increase in natural gas prices that more than offset a 0.1 percent drop in petroleum prices. Fuel 
prices fell 1.7 percent in 2013 following a 7.9 percent decrease the previous year. The price indexes for both 
petroleum and natural gas fell in 2013, declining 1.5 percent and 3.7 percent, respectively. Natural gas 
prices fell over the past year despite rising 35.5 percent over the final quarter of 2013.  

All Imports Excluding Fuel: Nonfuel import prices edged down 0.1 percent in December, after recording 
no change in November. Lower prices for each of the major finished goods categories and nonfuel industrial 
supplies and materials contributed to the December drop in nonfuel import prices. Despite movement over 
the last 4 months of 2013, the price index for nonfuel imports declined 1.2 percent over the past year, after 
recording no change in 2012. 

Table A. Percent change in import and export price indexes, selected categories

Exports

All Exports: Export prices rose 0.4 percent in December following a 0.1 percent advance in November. 
Higher agricultural and nonagricultural prices contributed to the December increase in overall export prices. 
Despite rising in 3 of the past 4 months, the price index for U.S. exports fell 1.0 percent over the past year, 
after increasing 1.1 percent in 2012. 

Agricultural Exports: Agricultural prices advanced 0.4 percent in December, after declining 0.2 percent 
the previous month. The December increase was driven by a 4.5 percent rise in soybean prices that more 
than offset lower vegetable and wheat prices. The price index for agricultural exports fell 6.3 percent in 
2013 following a 13.4 percent increase the previous year. The 2013 drop was led by a 36.4 percent decline 
in corn prices, a 19.3 percent decrease in wheat prices, and an 8.9 percent fall in soybean prices. 

All Exports Excluding Agriculture: The price index for nonagricultural exports rose 0.3 percent in 
December following a 0.1 percent advance in November. The December increase was driven by higher 
nonagricultural industrial supplies and materials prices. Despite the recent upturn, prices for nonagricultural 
exports fell for the second consecutive year in 2013, declining 0.5 percent, after a 0.3 percent drop in 2012.


                                   SELECTED DECEMBER HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China were unchanged in December, after ticking up 
0.1 percent in November. Prices for imports from China declined for the second consecutive year in 2013, 
decreasing 0.8 percent following a 0.6 percent drop in 2012. The 2013 decline was the largest calendar-year 
decrease since the index fell 1.8 percent in 2009. The price index for imports from Japan declined 0.3 
percent in December and 3.4 percent over the past year. The 2013 drop was the largest calendar-year decline 
for the index since a 5.2 percent decrease in 1997. Prices for imports from the European Union and Mexico 
also decreased in December, each declining 0.2 percent. In contrast, import prices from Canada ticked up 
0.1 percent in December.   

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 0.3 
percent in December, led by lower prices for gold and other precious metals. Lower metals prices also were 
the main contributor to a 5.0 percent drop in the price index for nonfuel industrial supplies and materials 
over the past year.  

Finished Goods: Each of the major finished goods categories recorded declines in both December and over 
2013. Prices for consumer goods declined 0.2 percent in December and 0.4 percent over the past year. 
Capital goods prices edged down 0.1 percent in December and fell 0.9 percent over the past 12 months. The 
price index for automotive vehicles decreased 0.1 percent in December and 1.4 percent in 2013. 

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices rose 0.6 percent in December, and 4.1 
percent in 2013. The December increase was driven by higher vegetable and coffee prices.  

Transportation Services: Import air passenger fares rose 7.1 percent in December, after a 3.4 percent 
advance in November and a 4.3 percent increase in October. The December increase was led by higher 
Asian and Latin American/Caribbean fares. Import air passenger fares advanced 8.2 percent in 2013. Import 
air freight prices fell 0.4 percent in December, while increasing 0.9 percent over the past year. 

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials 
prices rose 1.0 percent in December as a 4.3 percent increase in fuel prices more than offset lower prices for 
gold and other precious metals. Despite the December increase, the price index for nonagricultural industrial 
supplies and materials fell 1.6 percent in 2013. 

Finished Goods: Finished goods prices were mixed in December as the price indexes for capital goods and 
automotive vehicles fell 0.1 percent while consumer goods prices rose 0.1 percent. In 2013, capital goods 
prices and automotive vehicles prices increased 0.7 percent and 0.5 percent, respectively, while consumer 
goods prices declined 1.4 percent. 

Transportation Services: Export air passenger prices increased 9.4 percent in December following 
declines in each of the 3 previous months. The index for export air passenger fares rose 4.1 percent in 2013, 
led by a 7.6 percent advance in Latin American/Caribbean fares. Export air freight prices declined 0.2 
percent in December and rose 0.3 percent in 2013. 


Import and Export Price Index data for January 2014 are scheduled for release on Friday, February 
14, 2014 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). 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.