Transmission of material in this release is embargoed until					USDL-15-1560
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                           U.S. IMPORT AND EXPORT PRICE INDEXES - JULY 2015

U.S. import prices declined 0.9 percent in July, after recording no change the previous month, the U.S. 
Bureau of Labor Statistics reported today. Both fuel prices and nonfuel prices contributed to the July 
decrease. The price index for U.S. exports fell 0.2 percent in July following a 0.3-percent drop in June. 

Imports

All Imports: Import prices fell 0.9 percent in July, the first monthly decline since the index decreased 0.2 
percent in April and the largest 1-month drop since a 3.2-percent decline in January. A downturn in fuel 
prices in July drove much of the overall decrease, although a continued downward trend in nonfuel prices 
also supported the drop. The price index for overall imports decreased 10.4 percent for the year ended in 
July, and has not recorded a 12-month advance since the index rose 0.9 percent in July 2014.           

Fuel Imports: Prices for import fuel declined 5.7 percent in July, after rising 16.3 percent between 
February and June. The July drop was led by a 5.9-percent drop in petroleum prices that followed a 1.6-
percent increase the previous month. Natural gas prices also reversed direction in July, falling 2.0 percent, 
after recording a 2.4-percent advance in June. Fuel prices declined 42.7 percent over the past year. The price 
indexes for petroleum and natural gas also fell between July 2014 and July 2015, decreasing 43.4 percent 
and 42.8 percent, respectively.  

All Imports Excluding Fuel: The price index for nonfuel imports fell 0.3 percent in July and has not 
recorded a monthly advance since the index ticked up 0.1 percent in July 2014. In July 2015, lower prices 
for nonfuel industrial supplies and materials, consumer goods, and capital goods all contributed to the 
overall decrease. Prices for nonfuel imports also declined over the past 12 months, falling 2.6 percent. The 
drop was the largest year-over-year decrease since the index fell 3.1 percent for the 12 months ended in 
October 2009. Lower prices over the past year for finished goods; nonfuel industrial supplies and materials; 
and foods, feeds, and beverages all contributed to the 12-month decline for nonfuel import prices in July.     

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

Exports 

All Exports: U.S. export prices fell 0.2 percent in July as decreasing nonagricultural prices more than offset 
an upturn in agricultural prices. The July drop followed a 0.3-percent decrease in June and a 0.5-percent 
increase in May. The price index for exports also declined over the past year, falling 6.1 percent, and has not 
recorded a 12-month increase since the index rose 0.4 percent in August 2014.                

All Exports Excluding Agriculture: The price index for nonagricultural exports decreased 0.4 percent in 
July, after declining 0.2 percent the previous month. Falling prices for each of the major finished goods 
categories and nonagricultural industrial supplies and materials contributed to the July decrease. 
Nonagricultural exports fell 5.1 percent over the past 12 months, driven by a 13.6-percent decrease in the 
price index for nonagricultural industrial supplies and materials.     

Agricultural Exports: Prices for agricultural exports increased 0.8 percent in July following a 1.6-percent 
decline in June. The July advance is the first monthly rise since the index ticked up 0.1 percent in November 
2014, and the largest 1-month increase since the index rose 1.5 percent in April 2014. The July upturn was 
led by an 8.8-percent rise in soybean prices, a 7.0-percent advance in wheat prices, and a 10.7-percent 
increase in corn prices. The price index for agricultural exports fell 14.6 percent over the past year.  


                                       SELECTED JULY HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Prices for imports from China fell 0.2 percent in July following a 0.1-
percent drop the previous month. Import prices from China have not recorded a monthly increase since the 
index advanced 0.1 percent in December, and the index declined 1.2 percent over the past 12 months. The 
price index for imports from Japan declined 0.3 percent in July, after a 0.5-percent drop in June. Prices for 
imports from Japan fell 3.0 percent for the year ended in July. Import prices from Canada, Mexico, and the 
European Union also decreased in July, led by falling prices for fuel. In July, prices for imports from 
Canada declined 1.7 percent, import prices from Mexico decreased 0.8 percent, and the price index for 
imports from the European Union edged down 0.1 percent.                 

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices declined 0.8 
percent in July following a 0.4-percent decrease the previous month. Falling metals prices, which decreased 
3.4 percent in July and 1.4 percent in June, drove the decline in each month.   

Finished Goods: Both consumer goods prices and capital goods prices fell in July, while the price index for 
automotive vehicles recorded no change. Consumer goods prices declined 0.3 percent led by lower prices 
for household goods and medicinal, dental, and pharmaceutical materials. Prices for capital goods decreased 
0.2 percent driven by lower prices for computers, peripherals, and semiconductors.          

Foods, Feeds, and Beverages: The price index for import foods, feeds, and beverages recorded no change 
in July, after decreasing 0.7 percent in June.          

Transportation Services: Import air passenger fares fell 4.1 percent in July following an 8.9-percent 
increase in June and a 1.9-percent rise in May. The July downturn was led by a 6.9-percent decline in 
European fares and a 3.2-percent decrease in Asian fares. The index for import air passenger fares fell 2.4 
percent for the year ended in July. Import air freight prices decreased 3.1 percent in July, after declining 0.8 
percent in June. The July drop was led by lower Asian air freight prices and was the largest monthly decline 
since the index fell 3.3 percent in January 2012. Prices for import air freight decreased 5.9 percent over the 
past year.


Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials 
prices declined 1.1 percent in July following a 0.3-percent drop the previous month. The July decrease was 
driven by lower prices for metals, fuel, and chemicals.    

Finished Goods: Each of the major finished goods categories recorded declines in July. Consumer goods 
prices and prices for automotive vehicles each fell 0.2 percent. The price index for capital goods edged 
down 0.1 percent.            

Transportation Services: Export air passenger fares increased 3.1 percent in July, led by a 4.0-percent 
advance in European fares. The rise in overall export air passenger fares is the largest monthly increase 
since the index advanced 8.3 percent in December 2014. Despite the July rise, export air passenger fares fell 
15.5 percent over the past 12 months. Export air freight prices rose 0.4 percent in July and fell 0.9 percent 
over the past year.       

Import and Export Price Index data for August 2015 are scheduled for release on Thursday, September 10, 
2015 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.