Transmission of material in this release is embargoed until                           USDL-10-0964
8:30 a.m. (EDT) Wednesday, July 14, 2010

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                             U.S. IMPORT AND EXPORT PRICE INDEXES - JUNE 2010

U.S. import prices declined for the second consecutive month in June, the U.S. Bureau of Labor Statistics 
reported today, decreasing 1.3 percent. The drop was driven by declining fuel prices, although a downturn 
in nonfuel prices also contributed to the overall decrease. Export prices also fell in June, edging down 0.2 
percent following three consecutive monthly increases.


Imports

All Imports: Prices of U.S. imports fell 1.3 percent in June after a 0.5 percent drop the previous month. The 
decrease was the largest monthly decline since a 1.3 percent decline in January 2009, which was also the last 
time the index fell in consecutive months. Despite the recent declines, import prices advanced 4.5 percent 
for the year ended in June, down on a 12-month basis from an 8.7 percent increase for the May 2009-2010 
period.

Fuel Imports: Fuel prices also declined for the second consecutive month, falling 4.0 percent in June after a 
similar 4.1 percent decrease in May. The June decline was led by a 4.4 percent drop in petroleum prices 
which followed a 4.2 percent fall in May and was the largest monthly decrease for that index since a 4.6 
percent drop in January 2009. For the first half of 2010, petroleum prices were virtually unchanged. In 
contrast, natural gas prices rose 1.5 percent in June, partially offsetting the decline in petroleum prices. 
Despite the recent decreases, overall fuel prices increased 11.6 percent over the past year.   

All Imports Excluding Fuel: The price index for import prices excluding fuel fell 0.6 percent in June, the 
first monthly decline since a 0.2 percent decrease in July 2009 and the largest since a 0.6 percent drop in 
March 2009. A 1.5 percent downturn in nonfuel industrial supplies and materials was the largest contributor 
to the June decline, while prices for consumer goods, foods, feeds, and beverages, and capital goods also 
decreased. For the 12 months ended in June, nonfuel import prices advanced 2.8 percent. 


Table A. Percent changes

Exports

All Exports: Export prices fell 0.2 percent in June following increases of 0.6 percent, 1.1 percent, and 0.7 
percent, respectively, the previous three months. Most of the decline was attributable to falling 
nonagricultural prices, although agricultural prices also declined. The price index for overall exports rose on a 
12-month basis in June, increasing 4.3 percent. 

Agricultural Exports: Prices for agricultural exports edged down 0.1 percent in June after a 1.5 percent 
increase in May. The decrease was led by a 4.9 percent fall in corn prices and a 7.2 percent drop in wheat 
prices, which more than offset higher cotton and nut prices. Agricultural prices decreased 2.8 percent for the 
year ended in June. 

All Exports Excluding Agriculture: The price index for nonagricultural exports fell 0.2 percent in June, the 
first monthly decline for the index since March 2009. The June decrease was led by a 0.4 percent drop in 
capital goods prices and a 0.6 percent decline in consumer goods prices. Notwithstanding the June 
downturn, nonagricultural export prices rose 5.1 percent over the past year. 

 					


                                          SELECTED JUNE HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials fell 1.5 
percent in June, the first decline for the index since a 0.3 percent drop in July 2009 and the largest one-
month downturn since a 4.1 percent decrease in January 2009. The decline in nonfuel industrial supplies and 
materials prices was led by a 3.4 percent downturn in unfinished metals prices which increased 3.7 percent in 
May. Unfinished metals prices, up 38.6 percent over the past 12 months, have been the largest factor for an 
upward trend in nonfuel industrial supplies and materials prices over the past year.  

Finished Goods: Prices for each of the major finished goods categories declined in June. Consumer goods 
prices fell 0.4 percent, the largest drop since a 0.5 percent decline in March 2009.  Lower prices for 
household goods, toys, and television receivers all contributed to the decrease. Capital goods prices and 
prices for automotive vehicles also declined in June, falling 0.3 percent and 0.2 percent, respectively. 
 
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices also declined in June, falling 1.7 percent 
after a 1.3 percent rise the previous month. A 5.3 percent decrease in fruit prices and a 4.5 percent drop in 
vegetable prices were the primary contributors to the decline.   

Imports by Locality of Origin: The price index of imports from China declined 0.3 percent in June, the 
largest monthly decrease since a 0.3 percent drop in January. Falling fuel prices led the declines in import 
prices from Canada, the European Union, and Mexico; down 1.6 percent, 0.9 percent, and 0.8 percent, 
respectively. In contrast, prices of imports from Japan ticked up 0.1 percent in June.

Transportation Services: Import air passenger fares increased 9.2 percent in June, led by seasonal increases 
in European and Asian fares, up 13.7 percent and 11.5 percent, respectively. The seasonal June increase was 
the largest monthly advance since a 13.0 percent increase in June 2009. The index for import air passenger 
fares rose 19.0 percent over the last 12 months. Import air freight prices fell 0.9 percent in June, driven by a 
5.5 percent decline in European air freight prices. Despite the June drop, import air freight prices rose 22.1 
percent over the past year.

Export Prices
 
Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural supplies and materials were 
unchanged in June following a 1.6 percent increase in May. Decreasing metals and chemical prices were 
offset by a 5.1 percent increase in export fuel prices that was driven by an increase in coal prices. 
 
Finished Goods: Finished goods prices were down overall for the second consecutive month in June. The 
price index for capital goods fell 0.4 percent, the largest one-month drop since a similar 0.4 percent decline 
in August 2005. The June decrease was led by a 1.6 percent decline in computer, peripherals, and semi-
conductor prices. Consumer goods prices fell 0.6 percent in June, the first monthly decrease for the index 
since a 0.9 percent drop in April 2009.    

Transportation Services: Export air passenger fares rose 6.7 percent in June, led by an 18.1 percent surge in 
European fares. The index for export air passenger fares advanced 26.2 percent for the year ended in June. 
Export air freight prices increased 1.8 percent in June and 8.3 percent over the past year.
		
Import and Export Price Index data for July 2010 are scheduled for release on Thursday, August 12, 
2010 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.