Transmission of material in this release is embargoed until                                  USDL-12-0265
8:30 a.m. (EST) Tuesday, February 14, 2012

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                           U.S. IMPORT AND EXPORT PRICE INDEXES - JANUARY 2012

U.S. import prices rose 0.3 percent in January, the U.S. Bureau of Labor Statistics reported today, after 
ticking down 0.1 percent in December. Higher prices for both fuel and nonfuel imports contributed to the 
January increase. Prices for U.S. exports also advanced in January, rising 0.2 percent following a 0.5 percent 
decline the previous month.


Imports
 	
All Imports: Overall import prices increased for the second time in three months in January, rising 0.3 
percent following a 0.1 percent downturn in December and a 0.7 percent advance in November. Prior to the 
past three months, import prices had trended mostly down between June and October. However, the price 
index for overall imports rose 7.1 percent over the past 12 months. In January, both a 1.0 percent increase in 
fuel prices and a 0.1 percent uptick in nonfuel prices contributed to the monthly rise.   

Fuel Imports: Prices for import fuels rose 1.0 percent in January after declining 0.6 percent the previous 
month and increasing 3.3 percent in November. The January advance was driven by a 1.2 percent rise in 
petroleum prices. In contrast, prices for natural gas decreased a further 5.8 percent in January following a 4.1 
percent drop in December. Fuel prices increased 20.8 percent for the year ended in January, led by a 23.7 
percent advance in petroleum prices, the largest component of import fuels, which more than offset a 22.5 
percent decline in the price index for natural gas.    

All Imports Excluding Fuel: Nonfuel import prices ticked up 0.1 percent in January after a 0.2 percent 
advance the previous month. In January, prices for the major nonfuel categories were mixed. The price 
indexes for foods, feeds, and beverages; capital goods; and automotive vehicles rose for the month, while 
prices for nonfuel industrial supplies and materials; and consumer goods declined. Prices for nonfuel imports 
increased 2.9 percent over the past year.          

Table A. Percent changes

Exports 

All Exports: The price index for overall exports rose 0.2 percent in January, led by higher agricultural prices, 
after declining 0.5 percent in December. Export prices advanced 2.5 percent for the year ended in January, 
the smallest year-over-year increase since a 0.4 percent rise between November 2008 and November 2009.  

Agricultural Exports: Prices for agricultural exports rose 1.1 percent in January after falling 7.3 percent in 
the final quarter of 2011. An upturn in soybean and corn prices, which increased 6.3 percent and 6.1 percent, 
respectively, drove the January advance. Agricultural prices fell 1.0 percent over the last 12 months as lower 
prices for soybeans, cotton, and wheat more than offset rising prices for meat, vegetable, and corn.       

All Exports Excluding Agriculture: Nonagricultural prices were unchanged in January after decreasing in 
each of the previous three months. In January, the price indexes for nonagricultural industrial supplies and 
materials and for consumer goods decreased, while prices for capital goods and automotive vehicles rose. 
The price index for nonagricultural exports increased 3.0 percent for the January 2011-12 period, as price 
increases for nonagricultural industrial supplies and materials, and each of the major finished goods 
categories all contributed to the advance.    
		
                                          SELECTED JANUARY HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials fell 0.8 
percent in January, led by a 1.9 percent drop in unfinished metals prices and a 0.7 percent decline in 
chemicals prices. Decreasing prices for nonmonetary gold and other precious metals were the main 
contributors to the lower metals prices, and a 5.4 percent fall in fertilizer prices drove the decline in the price 
index for import chemicals.           

Finished Goods: Prices for each of the major finished goods categories were mixed in January. Prices for 
capital goods and automotive vehicles rose for the month, increasing 0.4 percent and 0.5 percent, 
respectively. In contrast, consumer goods prices fell for the first time in ten months, decreasing 0.4 percent 
in January.         
 
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices rose 2.3 percent in January following a 
0.4 percent decline in December. The January increase was led by 14.6 percent advance in the price index 
for import vegetables.   

Imports by Locality of Origin: Prices for imports from China advanced 0.3 percent in January and 3.5 
percent over the past year. The price index for imports from China has not recorded a monthly decrease 
since a 0.2 percent drop in June 2010. Import prices from Mexico and Japan also rose in January increasing 
1.2 percent and 0.2 percent, respectively. In contrast, prices for imports from the European Union fell 1.1 
percent in January and import prices from Canada declined 0.5 percent.     

Transportation Services: Import air passenger fares increased 0.2 percent in January following a 1.6 
percent advance the previous month. The January rise was led by a 4.8 percent increase in European fares, 
which more than offset declining Asian and Latin American/Caribbean fares. The price index for import air 
freight decreased 3.3 percent in January.    


Export Prices
 
Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies 
and materials fell 0.4 percent in January after a 0.7 percent decrease in December. The January drop in 
nonagricultural industrial supplies and materials prices was led by a 6.3 percent decrease in nonferrous 
metals prices, unlike December when the decline was driven by lower fuel prices. Export fuel prices rose 1.3 
percent in January.       
  
Finished Goods: Both capital goods prices and prices for automotive vehicles advanced in January, rising 
0.4 percent and 0.2 percent, respectively. In contrast, consumer goods prices fell 0.4 percent in January 
following a 0.5 percent drop over the fourth quarter of 2011. The January decline was driven by lower prices 
for medicinal, dental, and pharmaceutical preparatory materials.                

Transportation Services: The index for export air passenger fares increased 3.2 percent after a 3.8 percent 
rise in December. Higher Asian and Latin American/Caribbean fares contributed to the advances in each 
month. Export air freight prices rose 1.6 percent after ticking up 0.1 percent the previous month.
		
Import and Export Price Index data for February 2012 are scheduled for release on Wednesday, 
March 14, 2012 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).  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.