Transmission of material in this release is embargoed until                           USDL-14-1309
8:30 a.m. (EDT) Tuesday, July 15, 2014

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                           U.S. IMPORT AND EXPORT PRICE INDEXES - JUNE 2014

U.S. import prices advanced 0.1 percent in June following a 0.3-percent rise in May, the U.S. Bureau of 
Labor Statistics reported today. Higher fuel prices drove the monthly increases for both June and May. 
Prices for U.S. exports decreased 0.4 percent in June, after ticking up 0.1 percent the previous month. 

Imports

All Imports: The price index for overall imports continued to trend up in 2014, ticking up 0.1 percent in 
June, after advancing 0.3 percent the previous month. U.S. import prices increased 1.9 percent over the first 
half of 2014, leading import prices up 1.2 percent for the year ended in June. The year-over-year increase in 
June was the largest 12-month advance for import prices since the index rose 3.5 percent between March 
2011 and March 2012. 

Fuel Imports: Prices for import fuel increased 1.2 percent in June, after rising 1.6 percent in May. The June 
increase was led by a 1.4-percent advance in petroleum prices which more than offset a 1.9-percent drop in 
natural gas prices. Fuel prices advanced 6.2 percent over the past year, the largest year-over-year increase 
since the index rose 7.7 percent for the year ended in July 2013. A 6.4-percent rise in petroleum prices and a 
9.6-percent increase in natural gas prices drove the 12-month advance in overall fuel prices in June. A 12.5-
percent decline in nuclear fuel prices partially offset the higher petroleum and natural gas prices over the 
past 12 months. 

All Imports Excluding Fuel: In contrast to fuel prices, nonfuel import prices edged down 0.1 percent in 
June, after recording no change the 2 previous months. In June, lower foods, feeds, and beverages prices and 
lower prices for nonfuel industrial supplies and materials led the decline. The price index for nonfuel 
imports was unchanged over the past year. Lower prices for nonfuel industrial supplies and materials, 
automotive vehicles, and capital goods offset rising prices for foods, feeds, and beverages and consumer 
goods.    

Table A. Percent change in import and export price indexes, selected categories

Exports

All Exports: U.S. export prices fell for the second time in 3 months in June, declining 0.4 percent, after 
ticking up 0.1 percent in May and falling 1.0 percent in April. In June, lower prices for both agricultural 
prices and nonagricultural prices contributed to the overall decline. The 1.4-percent drop over the second 
quarter of 2014 was the largest 3-month decrease since a 1.6-percent drop between February and May 2013. 
Export prices rose 0.2 percent for the year ended in June.

Agricultural Exports: Agricultural export prices fell 1.8 percent in June, the largest 1-month drop in the 
index since a 4.2-percent decrease in August 2013. The June decline was driven by an 11.2-percent drop in 
wheat prices, a 7.5-percent fall in fruit prices, and an 8.1-percent decrease in corn prices. Agricultural prices 
decreased 1.2 percent over the past year. 

All Exports Excluding Agriculture: The price index for nonagricultural exports fell 0.3 percent in June, 
after ticking up 0.1 percent the previous month. Falling prices for nonagricultural industrial supplies and 
materials more than offset higher finished goods prices. Despite the June decline, nonagricultural prices 
increased 0.3 percent over the past 12 months. 


                                      SELECTED JUNE HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Prices for imports from China were unchanged in June following a 0.3-
percent advance in May. Import prices from China also rose over the past 12 months, advancing 0.4 percent 
between June 2013 and June 2014. The price index for imports from Japan also recorded no change in June, 
after edging down 0.1 percent in each of the 2 previous months. Prices for imports from Japan declined 1.6 
percent for the year ended in June. Import prices from Canada rose 0.6 percent in June, after recording no 
change the previous month. Higher petroleum prices led the June advance. In contrast, the price indexes for 
imports from the European Union and Mexico each edged down 0.1 percent in June. The drop followed a 
0.4-percent increase in May for import prices from the European Union, and a 0.1-percent decrease for 
import prices from Mexico. 

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 0.2 
percent for the second consecutive month in June. Lower chemical prices - down 0.7 percent in June and 
0.4 percent in May - were the main contributors to the decreases in both months. 

Finished Goods: Prices for each of the major finished goods categories recorded no change in June. Capital 
goods prices previously advanced 0.2 percent in May. The price indexes for consumer goods and 
automotive vehicles were unchanged for the second consecutive month in June. Consumer goods prices 
increased 0.7 percent for the year ended in June, and prices for automotive vehicles and capital goods each 
fell over the same period, down 0.4 percent and 0.1 percent, respectively. 

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices fell 1.7 percent in June, the largest 
monthly decline for the index since a 2.8-percent drop in February 2012. The June decrease was driven by 
lower prices for fruits, vegetables, fish and coffee.  

Transportation Services: The index for import air passenger fares advanced 6.9 percent in June, the largest 
monthly increase since the index rose 7.1 percent in December. The June advance was led by an 8.7-percent 
increase in European fares and a 5.8-percent rise in Asian fares. The index for import air passenger fares 
rose 1.4 percent over the past 12 months. Import air freight prices were unchanged in June and advanced 2.3 
percent over the past year. 

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials 
prices fell 1.0 percent in June following decreases of 0.1 percent in May and 3.9 percent in April. A 1.5-
percent drop in fuel prices, a 3.9-percent decline in gold prices, and a 0.6-percent decrease in chemicals 
prices were the largest contributors to the overall drop in nonagricultural industrial supplies and materials 
prices in June.  

Finished Goods: Prices for each of the major finished goods categories ticked up 0.1 percent in June. The 
June price uptick for capital goods and automotive vehicles followed advances of 0.2 percent and 0.1 
percent, respectively in May. In contrast, consumer goods prices edged down 0.1 percent in May. 

Transportation Services: Export air passenger fares advanced 4.1 percent in June, led by a 13.2 percent 
jump in European fares. Despite the June increase, export air passenger fares fell 0.1 percent over the past 
year. Export air freight prices were unchanged in June and up 9.6 percent over the past 12 months. 

Import and Export Price Index data for July 2014 are scheduled for release on Thursday, August 14, 
2014 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). 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.