Transmission of material in this release is embargoed until                                    USDL-12-1590
8:30 a.m. (EDT) Friday, August 10, 2012

Technical information: (202) 691-7101 * MXPinfo@bls.gov * www.bls.gov/mxp
Media contact:	       (202) 691-5902 * PressOffice@bls.gov



                         U.S. IMPORT AND EXPORT PRICE INDEXES - JULY 2012

U.S. import prices declined 0.6 percent in July, the U.S. Bureau of Labor Statistics reported today, after 
decreasing 2.4 percent in June and 1.5 percent in May. In each of the past three months, falling prices for 
both fuel and nonfuel imports contributed to the overall drop. In contrast, U.S. export prices rose 0.5 percent 
in July following a 1.7 percent decline the previous month. 


Imports
 	
All Imports: Prices of U.S. imports fell 0.6 percent in July, the fourth consecutive monthly decline for the 
index following a 1.4 percent increase in March. Import prices also fell over the past 12 months, declining 
3.2 percent after increasing 13.7 percent between July 2010 and July 2011. The July 2011-12 drop was the 
largest year-over-year decline in import prices since the index fell 5.6 percent for the year ended October 
2009. 

Fuel Imports: The price index for import fuel decreased 1.2 percent in July following declines of 8.8 
percent, 5.6 percent, and 0.9 percent, respectively, in the previous three months. The July drop was led by a 
1.6 percent decrease in petroleum prices. Fuel prices declined 13.0 percent over the past year after advancing 
44.8 percent over the previous 12 months. A 12.3 percent drop in petroleum prices and a 34.5 percent 
decrease in natural gas prices each contributed to the decline in fuel prices for the July 2011-12 period.      

All Imports Excluding Fuel: Nonfuel prices also fell in July, declining 0.4 percent following a 0.3 percent 
decrease in June and a 0.1 percent drop in May. The July decline was the largest monthly drop since a 0.4 
percent decrease in June 2010, and was driven by lower prices for nonfuel industrial supplies and materials 
and foods, feeds, and beverages. Despite the decline over the past three months, nonfuel import prices were 
unchanged for the year ended in July as higher finished goods prices offset falling prices for nonfuel 
industrial supplies and materials and foods, feeds, and beverages.


Table A. Percent changes

Exports 

All Exports: Export prices rose 0.5 percent in July after declining 1.7 percent in June and 0.5 percent in 
May. For July, higher agricultural prices more than offset declining nonagricultural prices. Despite the July 
upturn, the price index for U.S. exports fell 1.2 percent between July 2011 and July 2012, following a 9.8 
percent increase for the July 2010-11 period. The decline for the year ended in July was led by a 1.9 percent 
drop in nonagricultural prices.    

Agricultural Exports: Prices for agricultural exports increased 6.4 percent in July following a 3.6 percent 
decline the previous month. The advance was driven by rising prices for soybeans, corn, and wheat: up 16.2 
percent, 19.2 percent, and 18.0 percent, respectively. Led by the July increase, agricultural prices also 
increased over the past year, rising 4.3 percent.         

All Exports Excluding Agriculture: The price index for nonagricultural exports decreased 0.3 percent in 
July after falling 1.5 percent in June and 0.5 percent in May. The July decline was led by lower prices for 
nonagricultural industrial supplies and materials, consumer goods, and capital goods. The 1.9 percent decline 
in nonagricultural prices over the past year was the largest 12-month drop for the index since a 2.9 percent 
decrease between October 2008 and October 2009.  


                                           SELECTED JULY HIGHLIGHTS

Import Prices

Nonfuel Import Highlights: The 0.4 percent drop in nonfuel prices in July was led by a 1.8 percent decrease 
in nonfuel industrial supplies and materials. A 2.4 percent decline in chemicals prices and a 2.0 percent 
decrease in unfinished metals prices each contributed to the drop in nonfuel industrial supplies and materials 
prices. Foods, feeds, and beverages prices fell 1.2 percent in July; the primary factor for the decline was a 
9.5 percent drop in vegetable prices. The price indexes for capital goods and consumer goods also fell in 
July, each edging down 0.1 percent. In contrast, automotive vehicles prices rose 0.4 percent in July.    

Imports by Locality of Origin: Import prices from China fell 0.2 percent in July, resuming a recent 
downward trend after ticking up 0.1 percent in June. The decrease was led by a 0.7 percent drop in import 
apparel prices from China. Despite declining in four of the past five months, prices for imports from China 
advanced 0.8 percent over the past 12 months. The price indexes for imports from Canada, Mexico, and the 
European Union also fell in July, decreasing 0.7 percent, 0.4 percent, and 0.1 percent, respectively. Prices for 
imports from Japan were unchanged in July after ticking up 0.1 percent in each of the previous two months.    

Transportation Services: Import air passenger fares decreased 3.2 percent in July, led by a 7.1 percent drop 
in European fares. The July decrease for import air passenger fares followed a 10.3 percent increase the 
previous month. The index for import air passenger fares advanced 5.2 percent over the past year. Import air 
freight prices fell 1.4 percent in July, the first monthly decline for the index since a 1.1 percent decrease in 
February. Prices for import air freight declined 4.2 percent for the July 2011-12 period.

Export Prices
 
Nonagricultural Export Highlights: The price index for nonagricultural industrial supplies and materials 
fell 0.4 percent in July, while prices for each of the major finished goods areas were mixed. The July drop in 
nonagricultural industrial supplies and materials was driven by a 1.0 percent decline in chemicals prices. 
Prices for consumer goods and capital goods fell in July, decreasing 0.6 percent and 0.1 percent, 
respectively. In contrast, automotive vehicles prices increased 0.2 percent in July. 
 
Transportation Services: Export air passenger fares increased 3.5 percent in July after rising 2.1 percent in 
June and 6.6 percent in May. The July advance was driven by a 4.8 percent increase in Asian fares. The 
index for export air passenger fares also rose over the past 12 months, advancing 2.4 percent as higher Latin 
American/Caribbean and Asian fares more than offset lower European fares. Export air freight prices fell 2.1 
percent in July, the largest decline since a 3.0 percent decrease in May 2009. The price index for export 
freight decreased 1.0 percent for the year ended in July. 

                                                Announcement

Beginning with the July Import-Export Price Indexes data release this month, the import price indexes by 
locality of origin have been expanded to include price indexes for select industry areas. These new indexes 
are available at http://www.bls.gov/web/ximpim/ippsloor.htm. In total, 249 indexes have been added across 
the various localities, including 31 new price indexes for imports from China, and 20 new price indexes for 
imports from the European Union.
		
Import and Export Price Index data for August 2012 are scheduled for release on Wednesday, 
September 12, 2012 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.