Transmission of material in this release is embargoed until                               USDL-16-1455
8:30 a.m. (EDT) Wednesday, July 13, 2016

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                           U.S. IMPORT AND EXPORT PRICE INDEXES - JUNE 2016

U.S. import prices rose 0.2 percent in June, after rising 1.4 percent in May, the U.S. Bureau of Labor 
Statistics reported today. The June advance was driven by higher fuel prices which more than offset a 
decline in nonfuel prices. Prices for U.S. exports also increased in June, rising 0.8 percent following 
advances of 1.2 percent in May and 0.4 percent in April. 

Imports

All Imports: Prices for U.S. imports continued to trend up in June, rising 0.2 percent, after increasing 2.6 
percent between February and May. That was the largest 3-month rise since import prices increased 5.8 
percent between February and May 2011. Most of the recent increase in import prices was led by higher fuel 
prices. Despite the recent advances, import prices remain down on a 12-month basis, falling 4.8 percent for 
the year ended in June. That was the smallest over-the-year decline since the index fell 3.1 percent for the 
12 months ended in November 2014. 

Fuel Imports: Fuel prices increased 6.2 percent in June, after recording advances of 14.9 percent in May, 
9.8 percent in April, and 8.5 percent in March. In June, higher prices for both petroleum and natural gas 
contributed to the overall increase. Petroleum prices advanced 6.4 percent in June and prices for natural gas 
rose 5.2 percent. Even with the recent increase in fuel prices, the price index for import fuel decreased 26.0 
percent from June 2015 to June 2016. Prices for petroleum and natural gas fell 26.6 percent and 26.8 
percent, respectively, over the same period. 

All Imports Excluding Fuel: Prices for nonfuel imports declined 0.3 percent in June following increases in 
each of the previous 2 months. The 0.3-percent decrease was the largest monthly drop since the index 
declined 0.3 percent for 6 consecutive months from July to December 2015. In June, nonfuel prices were 
driven down by falling prices for capital goods; foods, feeds, and beverages; consumer goods; and industrial 
supplies and materials. Nonfuel import prices also decreased over the past 12 months, falling 1.8 percent. 

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

Exports

All Exports: Export prices advanced 0.8 percent in June following a 1.2-percent increase the previous 
month. The 2.4-percent rise in the second quarter of 2016 was the largest 3-month advance in export prices 
since the index rose 2.7 percent between February and May 2011. In June, higher agricultural and 
nonagricultural prices both contributed to the overall increase in export prices. The price index for U.S. 
exports decreased 3.5 percent over the past 12 months, the smallest over-the-year decline since the index fell 
3.0 percent in December 2014. 

Agricultural Exports: Prices for agricultural exports advanced 2.4 percent in June, after a 2.9-percent 
increase in May. Those were the 2 largest 1-month increases since the index advanced 4.8 percent in August 
2012. Both the June and May increases were led by higher soybean and corn prices. Soybean prices 
advanced 8.6 percent in June following an 11.3-percent advance in May and prices for corn rose 6.0 percent 
in June and 6.7 percent in May. Despite the recent increases, agricultural export prices declined 1.4 percent 
for the year ended in June. 

All Exports Excluding Agriculture: The price index for nonagricultural prices increased 0.5 percent in 
June, after rising 1.0 percent the previous month. The June advance was mostly led by higher 
nonagricultural industrial supplies and materials prices, although capital goods prices also rose. In contrast, 
consumer goods prices fell in June. Nonagricultural prices decreased 3.8 percent over the past year. 


                                        SELECTED JUNE HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China declined 0.4 percent in June, after recording no 
change in May. The June decrease was driven by a 0.5-percent drop in the price index for computer and 
electronic product manufacturing and was the largest monthly decline since the index fell 0.6 percent in 
May 2013. In contrast, the price indexes for imports from Canada, Mexico, and the European Union all rose 
in June, increasing 1.4 percent, 0.2 percent, and 0.1 percent, respectively. Each index was led by higher fuel 
prices. Prices for imports from Japan recorded no change in June following a 0.1-percent advance the 
previous month. 

Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials 
declined 0.3 percent in June, after increasing 1.7 percent in May, 0.4 percent in April, and 0.6 percent in 
March. The June downturn was driven by a 5.2-percent drop in gold prices and an 8.6-percent decline in the 
prices for other precious metals. 

Finished Goods: Finished goods prices were mostly down in June, after recording increases the previous 
month. Capital goods prices fell 0.3 percent in June, led by a 0.8-percent drop in the price index for 
computers, peripherals, and semiconductors. Prices for consumer goods fell 0.2 percent in June following a 
0.2-percent rise the previous month. The price index for automotive vehicles recorded no change in June, 
after increasing 0.4 percent the previous month. 

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices decreased 1.3 percent in June following a 
0.5-percent increase in May and a 1.3-percent rise in April. The June downturn resulted from a 12.8-percent 
drop in fruit prices, a 3.9-percent decrease in meat prices, and a 2.2-percent decline in the price index for 
fish and shellfish. 

Transportation Services: Import air passenger fares advanced 0.3 percent in June following a 1.5-percent 
rise in May and a 3.5-percent increase in April. The June rise was led by a 5.9-percent increase in Asian 
fares. Despite the recent increases, import air passenger fares fell 8.4 percent over the past 12 months. The 
price index for import air freight declined 2.0 percent in June and 13.0 percent over the past year. 


Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for export nonagricultural industrial supplies 
and materials rose 2.0 percent in June, after increasing 3.2 percent the previous month. Both increases were 
driven by higher fuel prices which advanced 10.4 percent in June and 11.1 percent in May. 

Finished Goods: Finished goods prices were mixed in June. Consumer goods prices fell 0.4 percent, the 
largest 1-month decline since the index decreased 0.8 percent in January. In contrast, capital goods prices 
ticked up 0.1 percent and the price index for automotive vehicles recorded no change. 

Transportation Services: Export air passenger fares increased 3.5 percent in June, driven by a 9.0-percent 
advance in European fares. Even with the June increase, export air passenger fares fell 10.0 percent over the 
past year. Prices for export air freight decreased 0.4 percent in June and 2.7 percent between June 2015 and 
June 2016. 

Import and Export Price Index data for July 2016 are scheduled for release on Thursday, August 11, 2016 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 
email subscription service at www.bls.gov/bls/list.htm. 
 
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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