Transmission of material in this release is embargoed until				     USDL-11-0201
8:30 a.m. (EST) Tuesday, February 15, 2011

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

The price index for U.S. imports increased 1.5 percent in January, the U.S. Bureau of Labor Statistics 
reported today, as higher prices for fuel and nonfuel imports each contributed to the advance. U.S. export 
prices rose 1.2 percent in January, following increases of 1.5 percent in November and 0.6 percent in 
December.


Imports

All Imports: Import prices advanced 1.5 percent in January, and for the first time since July 2008 the index 
advanced at least 1.0 percent for four consecutive months. Import prices increased 5.3 percent over the past 
year, the largest 12-month advance for the index since an 8.5 percent rise between May 2009 and May 2010. 
In addition to contributing to the January price increases, higher fuel and nonfuel prices also both 
contributed to the 12 month advance in overall imports. 

Fuel Imports: Fuel prices rose 3.9 percent in January, after rising 14.1 percent over the previous three 
months. Rising prices for petroleum and natural gas led the overall increase in fuel prices in January. 
Petroleum prices advanced 3.4 percent in January and prices for natural gas surged 13.0 percent, the largest 
monthly rise for that index since a 17.7 jump in January 2010. Fuel prices advanced 12.4 percent over the 
past year, led by a 14.3 percent increase in petroleum prices. Despite the January rise, natural gas prices fell 
18.8 percent over the past year.       

All Imports Excluding Fuel: The price index for nonfuel imports increased 0.8 percent in January, with 
higher prices for nonfuel industrial supplies and materials, finished goods, and foods, feeds, and beverages 
all contributing to the overall advance. The January increase matched a similar 0.8 percent rise in November, 
the largest one-month advances for the index since a 1.1 percent increase in April 2008. Nonfuel import 
prices rose 3.4 percent for the year ended in January, led by a 13.0 percent advance in nonfuel industrial 
supplies and materials prices and a 14.8 percent increase in foods, feeds, and beverages prices.

Table A. Percent changes

Exports 

All Exports: Export prices increased 1.2 percent in January, led up by rising prices for both agricultural and 
nonagricultural export prices. Overall export prices have not recorded a decline since July, and rose 6.8 
percent over the past year. The 12-month increase in January was the largest year-over-year advance since a 
7.0 percent increase between September 2007 and September 2008. 

Agricultural Exports: Agricultural export prices rose 3.2 percent in January, and increased 23.9 percent 
since July. The January advance was driven by higher prices for soybeans, corn, and wheat, up 5.8 percent, 
8.0 percent, and 8.2 percent, respectively. In contrast, cotton prices, which rose 111.8 percent over the past 
year, fell 0.2 percent in January, the first monthly decline for the index since February 2010. The price index 
for agricultural exports increased 22.6 percent for the year ended in January.

All Exports Excluding Agriculture: The price index for nonagricultural exports advanced 0.9 percent in 
January, the largest monthly increase for the index since a 1.3 percent rise in April 2010. Higher prices for 
nonagricultural industrial supplies and materials, capital goods, and automotive vehicles more than offset a 
0.4 percent drop in prices for consumer goods. Nonagricultural prices rose 5.3 percent over the past year, led 
mostly by a 13.9 percent advance in the price index for nonagricultural industrial supplies and materials.
   
 				
     
                                     SELECTED JANUARY HIGHLIGHTS


Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices increased 2.3 
percent in January after a 1.1 percent advance the previous month. Following a recent trend, the January 
increase was led by higher prices for unfinished metals and chemicals, up 3.2 percent and 2.3 percent, 
respectively. The price index for unfinished metals rose 20.5 percent over the past year, while chemicals 
prices advanced 13.7 percent for the same period.       

Finished Goods: Each of the major finished goods categories increased in January. Consumer goods prices 
advanced 0.3 percent; the largest contributors to the increase were a 0.9 percent advance in apparel, 
footwear, and household goods prices and a 4.0 percent jump in jewelry prices. Prices for automotive 
vehicles rose 0.5 percent, led by a 1.2 percent increase in parts prices. The price index for capital goods 
ticked up 0.1 percent as a 0.8 percent increase in capital goods prices, excluding computers more than offset 
1.4 percent drop in computers, peripherals, and semiconductor prices. 
 
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices advanced 2.6 percent in January 
following a 1.4 percent increase in December. Higher prices for food oils, fish, coffee, meat, and fruit all 
contributed to the January rise.   

Imports by Locality of Origin: Prices for imports from China rose 0.3 percent for the fourth consecutive 
month in January, driving the index up 1.4 percent over the past year. The advance between January 2010 
and January 2011 was the largest 12-month increase since a 1.5 percent rise in import prices from China in 
January 2009. The price index for imports from Japan rose 0.4 percent in January, the largest monthly 
increase since a 0.7 percent advance in June 2009. Higher fuel prices contributed to rising prices for imports 
from Canada, the European Union, and Mexico, up 2.8 percent, 1.0 percent, and 1.2 percent, respectively.   

Transportation Services: Import air passenger fares declined 2.6 percent in January, led by lower Asian 
and Latin American/Caribbean fares. Despite the downturn, import air passenger fares rose 12.2 percent over 
the past 12 months. The price index for import air freight fell 1.6 percent in January, but advanced 6.7 
percent over the past year.  


Export Prices
 
Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies 
and materials rose 2.3 percent in January after a 1.4 percent increase the previous month. The January 
advance was led by higher prices for fuel, metals, and chemicals.  
 
Finished Goods: Finished goods prices were mixed in January. Prices for capital goods and automotive 
vehicles increased 0.2 percent and 0.1 percent, respectively. In contrast, consumer goods prices declined 0.4 
percent.           

Transportation Services: Export air passenger fares rose 7.9 percent in January, driven by a 12.4 percent 
increase in Asian fares and a 7.7 percent advance in Latin American/Caribbean fares. The index for overall 
export fares increased 15.6 percent over the past 12 months. Export air freight prices advanced 3.8 percent 
in January and 7.9 percent over the past year.
		
Import and Export Price Index data for February 2011 are scheduled for release on Tuesday, March 
15, 2011 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.