Transmission of material in this release is embargoed until					USDL-15-0387
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			     U.S. IMPORT AND EXPORT PRICE INDEXES - FEBRUARY 2015

U.S. import prices increased 0.4 percent in February following declines of 3.1 percent in January and 2.5 
percent in December, the U.S. Bureau of Labor Statistics reported today. An upturn in fuel prices led the 
February rise. Prices for U.S. exports edged down 0.1 percent in February, after a 1.9-percent drop the 
previous month.

Imports

All Imports: Import prices advanced 0.4 percent in February, the first monthly rise since a 0.3-percent 
increase in June 2014, and the largest 1-month advance since the index rose 0.5 percent in March 2014. In 
February, an upturn in fuel prices more than offset declining nonfuel prices. Despite the February increase, 
import prices fell 9.4 percent over the past 12 months, the largest year-over-year decrease since the index 
fell 12.0 percent between September 2008 and September 2009.          

Fuel Imports: The price index for import fuel increased 6.5 percent in February, the first advance since a 
1.6-percent rise in June 2014. The February increase was the largest monthly advance since the index rose 
7.6 percent in April 2011, and followed a 19.5-percent drop in January, the largest 1-month decline since a 
22.2-percent drop in December 2008. An 8.1-percent advance in petroleum prices led the February increase 
in the price index for fuel, more than offsetting a 17.9-percent drop in natural gas prices. Despite the 
February upturn, fuel prices declined 43.0 percent over the past year. Petroleum prices declined 43.2 percent 
for the year ended in February, and natural gas prices decreased 52.0 percent over the same period.       

All Imports Excluding Fuel: Nonfuel import prices decreased 0.3 percent in February, after a 0.6-percent 
drop the previous month. The price index for nonfuel imports has not recorded a monthly advance since the 
index ticked up 0.1 percent in July 2014. In February, decreasing prices for nonfuel industrial supplies and 
materials; capital goods; automotive vehicles; and foods, feeds, and beverages all contributed to the overall 
drop in nonfuel prices. In contrast, consumer goods prices increased in February. Nonfuel import prices fell 
1.2 percent for the year ended in February.          

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

Exports

All Exports: U.S. export prices edged down 0.1 percent in February, led by lower agricultural prices which 
more than offset rising nonagricultural prices. The price index for overall exports has not recorded a 
monthly advance since the index increased 0.1 percent in July 2014. Overall export prices also fell for the 
year ended in February, declining 5.9 percent, the largest 12-month drop since the index decreased 6.2 
percent in August 2009.             

Agricultural Exports: The price index for agricultural exports decreased 2.0 percent in February, after a 
1.2-percent drop the previous month. A 5.1-percent decline in soybean prices drove the decrease, although 
lower prices for wheat, fruit, and meat were contributing factors. Agricultural prices fell 9.5 percent over the 
past 12 months, led by decreasing prices for soybeans, fruit, corn, and wheat.                                  

All Exports Excluding Agriculture: Nonagricultural export prices rose 0.2 percent in February following a 
2.0-percent decline in January and 1.0-percent decreases in both December and November. The February 
increase was the first advance since a 0.2-percent rise in July 2014, and was driven by higher prices for 
nonagricultural industrial supplies and materials and capital goods. The increases more than offset lower 
prices for consumer goods and automotive vehicles. Despite the February advance, nonagricultural export 
prices fell 5.5 percent over the past year, the largest year-over-year decrease since the index fell 6.6 percent 
in July 2009. 

					 SELECTED FEBRUARY HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Prices for imports from China declined 0.2 percent for the second 
consecutive month in February. The index fell 0.6 percent for the year ended in February, the largest 12-
month drop since a 0.7-percent decrease between January 2013 and January 2014. The price index for 
imports from Japan fell 0.2 percent in February, after declining 0.6 percent in January and 0.5 percent in 
December. Import prices from Japan have not recorded a monthly advance since the index rose 0.2 percent 
in March 2014. Prices for imports from the European Union also decreased in February, declining 1.0 
percent following a 1.4-percent drop in January. In contrast, higher petroleum prices led the price indexes 
for imports from Canada and Mexico up in February, 0.2 percent and 0.3 percent, respectively.              

Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials 
decreased 1.3 percent in February following a 1.2-percent decline the previous month. Falling chemicals 
prices, down 2.2 percent in February and 2.1 percent in January, led both monthly declines.             

Finished Goods: Prices for capital goods fell 0.4 percent in February, after decreasing 0.3 percent in 
January. The February drop was the largest 1-month decline for the index since a 0.5-percent decrease in 
March 2009. Automotive vehicle prices also fell in February, declining 0.2 percent following a 0.7-percent 
decrease the previous month. In contrast, consumer goods prices rose 0.3 percent in February.        

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices decreased 0.2 percent in February 
following a 1.6-percent decline the previous month. Lower coffee and vegetable prices contributed to the 
overall drop in foods, feeds, and beverages prices in February.     

Transportation Services: Import air passenger fares fell 2.5 percent in February, after decreasing 6.8 
percent the previous month. The index for import air passenger fares decreased 0.6 percent for the year 
ended in February. Import air freight prices declined 2.2 percent in February, the largest monthly decrease 
since the index fell 3.3 percent in January 2012. Prices for import air freight decreased 6.7 percent over the 
past 12 months.          

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials 
prices rose 0.7 percent in February following a 5.6-percent drop the previous month. The February rise was 
the first 1-month advance since the index increased 0.7 percent in July 2014, and was driven by an upturn in 
export fuel prices.  

Finished Goods: The price index for export capital goods rose 0.2 percent for the second consecutive 
month in February. Both increases were led by higher prices for non-motor vehicle transportation 
equipment. In contrast, consumer goods prices and prices for automotive vehicles declined in February, 
down 0.5 percent and 0.3 percent, respectively.       

Transportation Services: Export air passenger fares fell 14.3 percent in February, after advancing 0.4 
percent in January. The drop was the largest monthly decline for the index since its first publication in 
January 2001. The index for export air passenger fares decreased 5.9 percent for the year ended in February. 
Export air freight prices declined 1.7 percent in February, the largest drop since the index fell 2.2 percent in 
July 2012. Despite the February decline, the index rose 4.2 percent over the past year.     
		
Import and Export Price Index data for March 2015 are scheduled for release on Friday, April 10, 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.