Transmission of material in this release is embargoed until                                      USDL-17-0818
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                                U.S. IMPORT AND EXPORT PRICE INDEXES - MAY 2017                                 

U.S. import prices declined 0.3 percent in May, the U.S. Bureau of Labor Statistics reported today, after 
increasing 0.2 percent in April. Lower fuel prices drove the decrease in May and nonfuel prices recorded no 
change. The price index for U.S. exports declined 0.7 percent in May following a 0.2-percent advance in 
April.

Imports

All Imports: Import prices decreased 0.3 percent in May, the largest monthly drop since the index fell 0.5 
percent in February 2016. The decline was driven by falling fuel prices, unlike last month when higher 
nonfuel prices more than offset decreasing fuel prices. The price index for U.S. imports rose 2.1 percent for 
the 12 months ended in May. The last over-the-year decline in import prices was a 0.2-percent decrease in 
October 2016.

Fuel Imports: Prices for fuel fell 3.7 percent in May following a 0.3-percent drop in April and a 3.1-percent 
decrease in March. The last time fuel prices fell by more than 3.7 percent was a 6.8-percent decline in 
February 2016. The May decrease was primarily led by a 3.9-percent drop in petroleum prices. Natural gas 
prices also declined, falling 2.9 percent. Despite the recent decreases, import fuel prices increased 16.9 
percent between May 2016 and May 2017. The import price index for petroleum advanced 16.2 percent for 
the year ended in May and natural gas prices rose 44.1 percent.                           

All Imports Excluding Fuel: The nonfuel import price index recorded no change in May following a 0.8-
percent advance over the previous 3 months. Lower prices for nonfuel industrial supplies and materials 
offset price increases for foods, feeds, and beverages, and automotive vehicles. Capital goods prices and 
prices for consumer goods recorded no change in May. Nonfuel prices advanced 0.8 percent over the past 
12 months, continuing the trend of over-the-year increases since November when the index fell 0.2 percent. 
Rising prices for nonfuel industrial supplies and materials; foods, feeds, and beverages; and automotive 
vehicles more than offset lower prices for capital goods and consumer goods over the past year.                           
  
Table A. Percent change in Import and Export Price Indexes, selected categories

Exports

All Exports: The price index for overall exports fell 0.7 percent in May following increases of 0.2 percent 
in each of the previous 2 months. The May decrease was the first monthly drop since August 2016 when the 
index declined 0.8 percent. Prices for agricultural and nonagricultural exports contributed to the overall drop 
in export prices. The price index for U.S. exports rose 1.4 percent for the year ended in May.                                  

Agricultural Exports: Prices for agricultural exports declined 1.6 percent in May, the first monthly 
decrease since a 0.2-percent drop in December. In May, decreasing prices for vegetables and fruit more than 
offset rising prices for soybeans, meat, wheat and corn. Prices for vegetable exports fell 24.9 percent in 
May, the largest monthly decline since February 1998 when the index fell 26.1 percent. Despite the May 
decline, agricultural export prices ticked up 0.1 percent over the past 12 months. Higher prices for 
vegetables, meats, and nuts all contributed to the rise in agricultural prices between May 2016 and May 
2017.

All Exports Excluding Agriculture: Nonagricultural export prices decreased 0.6 percent in May, led by 
falling prices for nonagricultural industrial supplies and materials which more than offset higher prices for 
both capital goods and consumer goods. Export prices for automotive vehicles recorded no change in May. 
The price index for nonagricultural exports rose over the past year, increasing 1.5 percent.

                                            SELECTED MAY HIGHLIGHTS                                             

Import Prices

Imports by Locality of Origin: Import prices from China and Japan recorded no change in May following 
0.1-percent declines in April and 0.2-percent increases in March. Prices for imports from China declined 1.1 
percent for the year ended in May. In contrast, the price index for imports from Japan increased 1.2 percent 
over the past year. Import prices from Canada decreased 0.6 percent in May, after a 0.1-percent advance in 
April and a 1.1-percent drop in March. Prices for imports from Mexico rose 0.2 percent in May and last 
recorded a monthly decline when the index fell 1.2 percent in January. Prices for imports from the European 
Union recorded no change in May. 

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices decreased 0.5 
percent in May, the first monthly decline since the index fell 0.6 percent in October. The drop was driven by 
falling prices for unfinished metals.
 
Finished Goods: Prices for the major finished goods categories were mixed. Automotive vehicles prices 
rose 0.1 percent in May, driven by a 0.3-percent advance in non-engine parts. Both capital goods and 
consumer goods prices recorded no change in May.
    
Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages rose 1.2 percent in May, after a 0.5-
percent increase in April. A 3.1-percent advance in fruit prices, a 2.5-percent rise in meat prices, and a 3.2-
percent increase in vegetables prices all contributed to the monthly advance.

Transportation Services: Import air passenger fares rose 3.9 percent in May, driven by a 3.7-percent 
advance in European fares and a 6.2-percent increase in Asian fares. Despite the monthly increase, import 
air passenger fares fell 6.9 percent over the past 12 months. Import air freight prices rose 0.7 percent for the 
second consecutive month in May and 9.7 percent over the past year.

Export Prices

Nonagricultural Industrial Supplies and Materials: The export price index for nonagricultural industrial 
supplies and materials fell 1.9 percent in May following a 0.4-percent rise in April and a 0.1-percent decline 
in March. Despite the monthly decrease, prices for nonagricultural industrial supplies and materials 
increased 4.7 percent for the year ended in May and have not recorded a 12-month decline since October.
 
Finished Goods: Export prices for finished goods either increased or recorded no change in May. Export 
capital goods prices ticked up 0.1 percent, driven by a 0.4-percent advance in computers, peripherals, and 
semiconductors prices. The price index for export consumer goods rose 0.1 percent. Prices for automotive 
vehicles recorded no change in May, after a 0.2-percent rise in April.                        

Transportation Services: Export air passenger fares increased 3.0 percent in May, after a 5.7-percent drop 
in April and a 3.0-percent advance in March. Asian and European fares contributed to the increase in May, 
rising 10.5 percent and 5.1 percent, respectively. The export air passenger fares index advanced 2.2 percent 
for the year ended in May. Export air freight prices increased 1.3 percent in May and rose 4.2 percent 
between May 2016 and May 2017.
		
Import and Export Price Index data for June 2017 are scheduled for release on Tuesday, July 18, 2017 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 2-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 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 Producer Price Index (PPI) 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 indexes and excluded from 
the export air passenger fares 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 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 3 months after original publication. After 3 months, no further data 
revisions take place. For example, data first published 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 (NIPA) 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 NIPA, 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.

Email Subscription - The U.S. import and export price indexes news release is available through an 
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Additional Information - More detailed data are available on the Import/Export Price Indexes home 
page at www.bls.gov/mxp. For import and export price indexes data requests, send an email to 
mxpinfo@bls.gov.   

Information from this release will be made available to sensory impaired individuals upon request.  
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