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                                   U.S. IMPORT AND EXPORT PRICE INDEXES
                                             - FEBRUARY 2009 -

   The U.S. Import Price Index edged down 0.2 percent in February, the Bureau of Labor Statistics 
of the U.S. Department of Labor reported today, as declining nonpetroleum prices more than offset an 
upturn in petroleum prices.  Export prices also recorded a modest decrease in February, falling 0.1 
percent.

                             Percent changes in import and export price indexes
                                             by End Use category
                                         - not seasonally adjusted -

Import Goods
   
   Import prices fell 0.2 percent in February after declining 1.2 percent in January.  The index 
decreased every month since July 2008 and fell 12.8 percent for the year ended in February, the largest 
12-month decline since the index was first published in 1982.  The February decrease was led by a 0.6 
percent drop in nonpetroleum prices which fell for the seventh consecutive month.  Nonpetroleum 
import prices declined 1.9 percent over the past year.  In contrast, petroleum prices advanced 3.9 percent 
in February after falling 68.9 percent from July through January.  The price index for import petroleum 
fell 52.4 percent for the February 2008-2009 period.  
    
   The continued decline in nonpetroleum prices was led by a 2.0 percent drop in nonpetroleum 
industrial supplies and materials prices.  That decrease was driven by a sharp fall in natural gas prices, 
although lower prices for chemicals and some metals also contributed to the decline.  The price index for 
nonpetroleum industrial supplies and materials fell 4.5 percent in January and has not recorded an 
increase since July 2008.  Lower prices for foods, feeds, and beverages and capital goods also 
contributed to the drop in nonpetroleum prices in February, decreasing 3.2 percent and 0.4 percent, 
respectively.    

   In contrast, prices for automotive vehicles rose for the second consecutive month, increasing 0.2 
percent in February following a 0.3 percent advance in January.  
   
   The price index for consumer goods was unchanged in February as price declines for jewelry and 
diamonds were offset by price increases for nonmanufactured consumer goods.  Consumer goods prices 
also recorded no change in January.   

Export Goods 

   Export prices edged down 0.1 percent in February as a 1.7 percent drop in agricultural prices 
more than offset a 0.1 percent increase in nonagricultural prices.  The drop in export prices followed a 
0.5 percent increase in January; however, the index declined in each of the previous five months and 
decreased 4.5 percent for the year ended in February.  Agricultural prices fell for the fourth time in the 
past five months in February after rising 6.2 percent in January.  The February decrease was led by lower 
prices for corn, wheat, and soybeans, all of which turned down after rising in January.  Agricultural 
export prices fell 15.2 percent over the past year, the largest annual decrease since the index was first 
published in 1985.    
   
   Nonagricultural prices ticked up 0.1 percent for the second consecutive month in February, the 
first monthly advances for the index since July 2008.  Despite the modest upturn, the index declined 3.3 
percent for the February 2008-2009 period.  The February increase was driven by a 0.3 percent rise in 
capital goods prices that was led in turn by higher semiconductor prices.  The February increase in 
capital goods prices followed a 0.5 percent advance the previous month.
   
   In contrast, the price indexes for consumer goods, automotive vehicles, and nonagricultural 
supplies and materials all declined in February.  Consumer goods prices and prices for automotive 
vehicles each decreased 0.3 percent.  The 0.3 percent drop in automotive vehicles prices was the largest 
one-month drop since the index was first published monthly in December 1988.  Nonagricultural 
industrial supplies and materials prices fell 0.1 percent in February, the seventh consecutive month the 
index was down. 
   
Imports by Locality of Origin 
	
   Prices for imports from China fell 0.5 percent in February after decreasing in each of the previous 
five months.  Despite the recent downward trend, import prices from China rose 1.0 percent for the year 
ended in February.  
    
   Import prices from Canada and from Mexico also continued to decline in February, falling 1.6 
percent and 1.3 percent, respectively.  Prices for imports from Canada fell for the seventh consecutive 
month, and decreased 14.4 percent over the past year, the largest annual decline since January 2002.  The 
price index for imports from Mexico fell 8.6 percent for the February 2008-2009 period. 
   
   In contrast, prices for imports from Japan rose for the fifth consecutive month in February, 
advancing 0.2 percent for the month.  The index increased 1.9 percent over the past 12 months.
   
   The price index for imports from the European Union was unchanged in February and declined 
2.5 percent over the past year.    

Import and Export Services

   Import air passenger fares decreased 4.6 percent in February following a 5.6 percent drop the 
previous month.  The February decrease was led by lower European fares which fell 5.7 percent after 
rising 5.3 percent in January.  Despite the recent drop, the index for import air passenger fares rose 8.1 
percent for the year ended in February.  Export air passenger fares also decreased in February, falling 
10.7 percent as lower fares from Asia, Europe, and the Latin America/Caribbean region all contributed 
to the overall decrease.  Fares for export air passengers decreased 1.9 percent over the past 12 months.     
	
   Import air freight prices fell 1.1 percent in February, partially attributable to a 2.3 percent drop in 
European air freight prices.  The price index for import air freight decreased 4.8 percent over the past 
year.  Prices for export air freight declined 3.3 percent in February and 4.0 percent for the February 
2008-2009 period.

CONTENTS OF RELEASE

This news release includes the following tables:

Table 1    U.S. Import Price Indexes, by End Use
Table 2    U.S. Export Price Indexes, by End Use
Table 3    U.S. Import Price Indexes, by NAICS
Table 4    U.S. Export Price Indexes, by NAICS
Table 5    U.S. Import Price Indexes, by Harmonized System
Table 6    U.S. Export Price Indexes, by Harmonized System
Table 7    U.S. Import Price Indexes, by Locality of Origin
Table 8    U.S. International Price Indexes for Selected Transportation Services
-------------------------------------------------------------------
Import and Export Price Index data for March 2009 are scheduled for release on April 9, 2009 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 for merchandise goods 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 excluded from both indexes. 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 IPP news release is available through an e-mail subscription service at 
(http://www.bls.gov/mxp) or (http://www.bls.gov/bls/newsrels.htm).
 
Additional Information -- More detailed IPP data are available on the IPP 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 IPP-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 IPP 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.