Transmission of material in this release is embargoed until					USDL-11-0850
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			     U.S. IMPORT AND EXPORT PRICE INDEXES - MAY 2011

U.S. import prices increased 0.2 percent in May, the U.S. Bureau of Labor Statistics reported today, after 
advancing 3.0 percent in March and 2.1 percent in April. A 0.2 percent drop in fuel prices partially offset 
higher nonfuel prices. U.S. export prices rose 0.2 percent in May following a 0.9 percent increase the 
previous month.


Imports 
 	
All Imports: Import prices ticked up 0.2 percent in May after rising more than 1.0 percent in each of the 
previous seven months. The May advance was led by higher nonfuel prices. In contrast, fuel prices declined 
for the month. Prices for overall imports advanced 12.5 percent over the past year, the largest 12-month 
month increase since the index rose 13.1 percent between September 2007 and September 2008. 

Fuel Imports: Prices for fuel decreased 0.2 percent in May, the first monthly decline for the index since a 
1.5 percent drop in September 2010. In May, a 0.4 percent drop in petroleum prices more than offset a 4.1 
percent increase in natural gas prices. Despite the May decrease, fuel prices advanced 42.3 percent over the 
past 12 months, the largest year-over-year rise since the index increased 54.4 percent for the year ended 
April 2010. Both petroleum and natural gas prices rose for the May 2010-11 period, advancing 44.6 percent 
and 8.8 percent, respectively.  

All Imports Excluding Fuel: The price index for nonfuel imports continued to rise in May, although the 0.4 
percent increase was the smallest monthly advance since a 0.3 percent gain in December 2010. Since August 
2010, the index has risen between 0.3 percent and 0.8 percent on a monthly basis. Higher nonfuel industrial 
supplies and materials prices and finished goods prices drove the May advance, while foods, feeds, and 
beverages prices decreased for the month. Overall, nonfuel import prices rose 4.4 percent on a 12-month 
basis.    

Table A. Percent changes

Exports

All Exports: Export prices increased 0.2 percent in May, the smallest monthly advance since the index 
declined 0.2 percent in July 2010. In May, agricultural prices fell for the first time since July 2010, but 
were more than offset by a continued upward trend in nonagricultural prices. The price index for overall 
exports rose 9.0 percent for the year ended in May. 

Agricultural Exports: Agricultural export prices fell 2.0 percent in May, breaking a nine-month trend of 
rising prices. The decline is the largest monthly drop in agricultural prices since a 4.0 percent decrease in 
February 2010. A 17.1 percent drop in cotton prices led the May decline, although prices for soybeans, corn, 
and wheat, fell 1.5 percent, 1.1 percent, and 2.0 percent, respectively. Despite the May drop, agricultural 
prices increased 30.1 percent over the past year, driven by higher prices for corn, cotton, wheat, and 
soybeans over that period. 

All Exports Excluding Agriculture: Nonagricultural prices continued to rise in May, increasing 0.5 percent. 
Rising prices for nonagricultural industrial supplies and materials and most finished goods contributed to the 
advance. The price index for nonagricultural prices has not recorded a decline since July 2010, and increased 
7.0 percent over the past 12 months.
   
 				
     
					 SELECTED MAY HIGHLIGHTS


Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices increased 1.4 
percent in May after rising a similar 1.5 percent the previous month. The May advance was attributable to a 
3.1 percent rise in unfinished metals prices led by continued higher prices for gold and other precious metals. 
Rising chemicals prices, up 1.5 percent in May following a 2.1 percent increase in April, also contributed to 
the advance.        

Finished Goods: Each of the three major finished goods areas rose for the second consecutive month in 
May. Consumer goods prices increased 0.3 percent in May, driven primarily by a 0.7 percent rise in the price 
index for cotton apparel and household goods. Automotive vehicles prices advanced 0.5 percent, led by 
higher prices for automotive parts. Capital goods prices also rose in May, increasing 0.2 percent. 
 
Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages fell 0.5 percent in May, the 
first monthly decline for the index since a 1.6 percent decrease in June 2010. The May decline was led by a 
9.4 percent drop in vegetable prices.   

Imports by Locality of Origin: Import prices from China continued to rise in May, advancing 0.3 percent 
after rising 0.6 percent in March and 0.4 percent in April. Prices for imports from China rose 2.8 percent on a 
12-month basis for the second consecutive month, the largest year-over-year increases since rising 2.8 
percent for the December 2007-08 period. The price indexes for imports from the European Union and 
Canada also rose in May, advancing 0.8 percent and 0.5 percent, respectively. In contrast, import prices from 
Mexico fell 0.7 percent. Prices for imports from Japan were unchanged in May.   

Transportation Services: The index for import air passenger fares increased 5.6 percent in May, and was 
led by higher European and Asian fares. Import air passenger fares advanced 7.3 percent for the year ended 
in May. Prices for import air freight rose 2.9 percent in May and 9.8 percent over the past 12 months.   

Export Prices
 
Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies 
and materials advanced 1.0 percent in May following a 2.1 percent rise in April. The increase was led by a 
2.1 percent advance in nonferrous metals prices and a 2.2 percent rise in chemical prices. Fuel prices, which 
advanced 34.0 percent over the past year, only rose 0.6 percent in May.     
 
Finished Goods: Prices for finished goods were mostly up in May, with capital goods prices rising 0.4 
percent and prices for automotive vehicles advancing 0.2 percent. The increase in capital goods prices was 
led by a 1.8 percent rise in electrical generating equipment. In contrast, consumer goods prices edged down 
0.1 percent.             

Transportation Services: Export air passenger fares advanced 2.5 percent in May, following a 7.1 percent 
increase in March and a 1.6 percent gain in April. In May, higher Asian and European fares more than offset 
declining Latin American/Caribbean fares. The index for export air passenger fares rose 10.0 percent for the 
year ended in May. Export air freight prices increased 3.6 percent in May and 19.0 percent over the past 
year. 
		
Import and Export Price Index data for June 2011 are scheduled for release on Wednesday, July 13, 
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.