Technical information:					      		  	  USDL-09-0936
     (202) 691-7101								  Transmission of this
Media contact:								          material is embargoed
     (202) 691-5902								  until 8:30 A.M. EDT
Internet address:   http://www.bls.gov/mxp					  Thursday, August 13, 2009


                                   U.S. IMPORT AND EXPORT PRICE INDEXES
                                                - JULY 2009 -

   The U.S. Import Price Index fell 0.7 percent in July, the Bureau of Labor Statistics of the U.S. 
Department of Labor reported today.  Decreases for both petroleum prices and nonpetroleum prices 
contributed to the July drop for overall import prices, which followed four consecutive monthly 
increases.  Export prices also declined in July, falling 0.3 percent after advancing 1.0 percent the 
previous month.

                               Percent changes in import and export price indexes
                                              by End Use category
                                           - not seasonally adjusted -
                                    

  
  
Import Goods
   
   A downturn in petroleum prices, which fell 2.8 percent in July, was the primary factor for the 
turnaround in overall import prices.  Prices for import petroleum rose 66.6 percent over the previous five 
months, which led overall imports up 6.0 percent over that period.  Despite the jump between February 
and June, petroleum prices fell 49.9 percent over the past year.  Overall import prices posted the largest 
annual decline since the index was first published in 1982, falling 19.3 percent for the year ended in 
July.  In addition, nonpetroleum import prices declined 0.2 percent in July, resuming a downward trend 
over the past year after advancing the past two months.  Nonpetroleum prices fell 7.3 percent over the 
past 12 months, the largest annual decrease since the index was first published in 1985.        
    
   The July decline in nonpetroleum prices was led by a 0.9 percent decrease in the price index for 
nonpetroleum industrial supplies and materials which was driven by lower prices for chemicals and 
natural gas.  Nonpetroleum industrial supplies and materials prices declined 26.0 percent over the past 
12 months.  Consumer goods prices also decreased, falling 0.4 percent in July and 1.2 percent over the 
past year.  Lower prices for apparel, television and video receivers, and jewelry all contributed to the 
July decline.
   
   In contrast, the price indexes for capital goods and automotive vehicles increased in July, rising 
0.2 percent and 0.1 percent, respectively.  Capital goods prices fell 1.5 percent for the year ended in July, 
whereas automotive vehicle prices were unchanged over the past year.


Export Goods 

   Export prices fell 0.3 percent in July after increasing for three consecutive months.  The July 
decline was driven by a 4.9 percent decrease in agricultural prices, which also fell for the first time in 
four months.  Sharp drops in corn and wheat prices were the largest contributors to the decline.  The 
price index for agricultural exports decreased 22.3 percent over the past 12 months, the largest annual 
decline since the index was first published in 1985.  Nonagricultural prices advanced 0.2 percent in July, 
but decreased 6.5 percent for the July 2008-2009 period.  Overall export prices fell 8.1 percent over the 
past year, the largest annual decrease since the index was first published in 1983.
   
   Nonagricultural industrial supplies and materials prices increased for the fourth consecutive 
month, ticking up 0.1 percent in July.  Higher prices for plastics were mostly offset by lower fuel prices.  
Despite the recent increases, the price index for nonagricultural industrial supplies and materials 
decreased 21.0 percent over the past 12 months.
   
   Capital goods prices and consumer goods prices also rose in July, advancing 0.3 percent and 0.4 
percent, respectively.  Over the past 12 months, prices for capital goods rose 1.6 percent, while prices for 
consumer goods rose 0.2 percent.
   
   In contrast, prices for automotive vehicles decreased in July, falling 0.2 percent after decreasing 
0.1 percent the previous month.  The price index for automotive vehicles edged up 0.1 percent for the 
July 2008-2009 period.
   
  
Imports by Locality of Origin 
	
   The price indexes for imports from Mexico and from Canada each decreased in July, led by 
lower petroleum prices.  Import prices from Mexico fell 1.1 percent in July and 16.8 percent over the 
past year.  Similarly, prices for imports from Canada declined 1.0 percent for the month and 26.5 percent 
for the year ended in July.
   
   Import prices from China fell 0.2 percent in July after ticking up 0.1 percent in June.  Overall 
import prices from China decreased 3.3 percent for the July 2008-2009 period, the largest 12-month drop 
since the index was first published in December 2003.
   
   In contrast, prices for imports from the European Union and from Japan advanced 0.2 percent 
and 0.1 percent, respectively, in July.  The price index for imports from the European Union fell 7.2 
percent for the year ended in July, led in part by lower petroleum prices, while import prices from Japan 
rose 1.6 percent.


Import and Export Services

   Import air passenger fares decreased 3.1 percent in July after increasing 13.0 percent the previous 
month.  The decline was led by a 6.0 percent decrease in European fares.  Over the past year, import air 
passenger fares fell 20.1 percent, the largest 12-month drop since the index was first published in 1988.  
Export air passenger fares rose in July, advancing 0.7 percent because of higher European and Latin 
America/Caribbean fares.  Despite the July increase, export air passenger fares fell 24.3 percent, the 
largest 12-month drop since the index was first published in 1986.
	
   The price index for import air freight advanced 0.3 percent in July after a 2.0 percent increase the 
previous month.  The index fell 16.9 percent for the year ended in July.  Export air freight prices rose 1.4 
percent in July after decreasing for 10 consecutive months.  Overall, export air freight prices declined 
16.8 percent over the past year.


CONTENTS OF RELEASE

This news release includes the following tables:

Table 1    U.S. Import Price Indexes, by End Use
Table 2    U.S. Export Price Indexes, by End Use
Table 3    U.S. Import Price Indexes, by NAICS
Table 4    U.S. Export Price Indexes, by NAICS
Table 5    U.S. Import Price Indexes, by Harmonized System
Table 6    U.S. Export Price Indexes, by Harmonized System
Table 7    U.S. Import Price Indexes, by Locality of Origin
Table 8    U.S. International Price Indexes for Selected Transportation Services
-------------------------------------------------------------------
Import and Export Price Index data for August 2009 are scheduled for release on September 11, 2009 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 for merchandise goods 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 IPP news release is available through an e-mail subscription service at 
(http://www.bls.gov/mxp) or (http://www.bls.gov/bls/newsrels.htm).
 
Additional Information -- More detailed IPP data are available on the IPP 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 IPP-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 IPP 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.