Transmission of material in this release is embargoed until				    USDL-15-0212
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                         U.S. IMPORT AND EXPORT PRICE INDEXES - JANUARY 2015

U.S. import prices fell 2.8 percent in January, after declining 1.9 percent in December and 1.8 percent in 
November, the U.S. Bureau of Labor Statistics reported today. Decreasing fuel prices drove each of the 
monthly drops. The price index for U.S. exports decreased 2.0 percent in January, and has not recorded a 
monthly advance since July.

Imports

All Imports: The price index for U.S. imports declined 2.8 percent in January. The index has not recorded a 
monthly advance since June 2014, and the January drop was the largest 1-month decrease since the index 
fell 4.6 percent in December 2008. U.S. import prices decreased 8.0 percent between January 2014 and 
January 2015, the largest 12-month decline since the index fell 12.0 percent in September 2009.          

Fuel Imports: Fuel prices fell 16.9 percent in January following declines of 11.3-percent in December and 
9.2-percent in October. The January decrease was the largest monthly drop for the index since a 22.2-
percent decline in December 2008. Lower petroleum and natural gas prices, down 17.7 percent and 8.8 
percent, respectively, each contributed to the January decrease in overall fuel prices. The price index for 
import fuel declined 39.0 percent over the past 12 months, the largest year-over-year drop since the index 
fell 41.0 percent between August 2008 and August 2009. In January, the 12-month decline in fuel prices 
was led by a 40.1-percent decrease in petroleum prices and a 29.0-percent drop in natural gas prices.       

All Imports Excluding Fuel: Prices for nonfuel imports fell 0.7 percent in January and have not recorded a 
monthly advance since July 2014. The January decline matches the 0.7-percent drop in January 2009, and 
those were the largest 1-month decreases since the index fell 1.1 percent in December 2008. Decreases in 
prices for each of the major finished goods categories; nonfuel industrial supplies and materials; and foods, 
feeds, and beverages all contributed to the overall decline in nonfuel import prices. The price index for 
nonfuel imports decreased 0.9 percent for the year ended in January.        

Table A. Percent change in Import and Export Price Indexes, selected categories

Exports

All Exports: U.S. export prices declined 2.0 percent in January after declines of 1.0-percent in December 
and 0.9-percent in both November and October. The January drop matched a 2.0-percent decline in October 
2011, the largest monthly decrease since the index fell 2.2 percent in December 2008. Both agricultural and 
nonagricultural prices contributed to the overall drop in January. The price index for overall exports fell 5.4 
percent over the past 12 months, the largest year-over-year decline since the index decreased 5.6 percent in 
September 2009.             

Agricultural Exports: Agricultural prices decreased 1.2 percent in January, after a 0.7-percent decline in 
December. The January drop was driven by a 3.2-percent decrease in meat prices, a 6.8-percent fall in wheat 
prices, and a 3.4-percent drop in fruit prices. Prices for overall agricultural exports declined 6.3 percent for 
the year ended in January, led by lower prices for soybeans and corn.                                  

All Exports Excluding Agriculture: The price index for nonagricultural exports decreased 2.1 percent in 
January following declines of 1.0-percent in both December and November. The drop in January was the 
largest 1-month decrease since the index fell 2.8 percent in November 2008. The January decrease was 
driven by a sharp drop in nonagricultural industrial supplies and materials prices, although lower prices for 
consumer goods and automotive vehicles also contributed to the overall decline. Nonagricultural prices fell 
5.3 percent over the past year. 


                                      SELECTED JANUARY HIGHLIGHTS
                                      

Import Prices

Imports by Locality of Origin: Import prices from China fell 0.3 percent in January, after recording no 
change in each of the previous 4 months. The decline was the largest monthly drop since the index fell 0.6 
percent in May 2013. Prices for imports from Japan decreased 0.7 percent in January following a 0.5-
percent decline in December. The January decrease was the largest 1-month drop since the index fell 0.8 
percent in April 2013. The price indexes for imports from Canada, the European Union, and Mexico also 
decreased in January led by lower fuel prices. Import prices from Canada fell 4.8 percent for the month, 
while prices for imports from the European Union and Mexico decreased 1.0 percent and 2.1 percent, 
respectively.            

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 1.2 
percent in January, the largest monthly decline since a 1.7-percent drop in July 2013. The January decrease 
was driven by a 2.2-percent decline in chemicals prices and a 1.9-percent drop in unfinished metals prices. 

Finished Goods: Each of the major finished goods categories declined in January. Capital goods prices 
decreased 0.4 percent, the largest 1-month drop since the index fell 0.5 percent in March 2009. Lower prices 
for industrial service machinery and computers, peripherals, and semiconductors led the January decline. 
Consumer goods prices decreased 0.3 percent in January, while prices for automotive vehicles fell 0.5 
percent.         

Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages decreased 2.2 percent, after 
rising 0.7 percent the previous month. The January decline was led by a 17.0-percent downturn in vegetable 
prices.     

Transportation Services: Import air passenger fares fell 6.8 percent in January following a 7.9-percent 
increase the previous month. The January drop was led by a 14.4-percent decline in Asian fares and was the 
largest monthly decrease since a 7.9-percent decline in August 2013. The index for import air passenger 
fares rose 2.3 percent over the past year. Import air freight prices ticked up 0.1 percent in January, the first 
advance since the index increased 0.3 percent in August 2014. Prices for import air freight fell 5.6 percent 
for the year ended in January.        


Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and 
materials declined 6.1 percent in January, after decreasing 3.1 percent the previous month. The January drop 
was the largest monthly decline since the index fell 8.3 percent in November 2008, and was led by an 18.0-
percent drop in fuel prices.  

Finished Goods: Consumer goods prices fell 0.8 percent in January, driven by a 3.2-percent decrease in the 
price index for medicinal, dental, and pharmaceutical materials. In January, automotive vehicle prices edged 
down 0.1 percent, while prices for capital goods ticked up 0.1 percent.      

Transportation Services: Export air passenger fares rose 1.1 percent in January, after increasing 7.8 
percent in December. Despite the recent advances, the index for export air passenger fares declined 3.8 
percent for the year ended in January. Prices for export air freight increased 3.0 percent in January following 
a 1.7-percent decline the previous month. The January advance was the largest 1-month rise since the index 
increased 5.8 percent in May 2014. Export air freight prices rose 6.4 percent over the past 12 months.    

Import and Export Price Index data for February 2015 are scheduled for release on Thursday, March 
12, 2015 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). 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.