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			      U.S. IMPORT AND EXPORT PRICE INDEXES - AUGUST 2015

U.S. import prices declined 1.8 percent in August following a 0.9-percent drop the previous month, the U.S. 
Bureau of Labor Statistics reported today. The August decrease was primarily driven by lower fuel prices, 
although falling nonfuel prices contributed to the decline as well. Prices for U.S. exports also fell in August, 
decreasing 1.4 percent, after a 0.4-percent decline in July. 

Imports

All Imports: The price index for U.S. imports decreased 1.8 percent in August, the largest monthly decline 
since the index fell 3.2 percent in January. A sharp drop in fuel prices and lower nonfuel prices both 
contributed to the decrease in August. With the exception of May and June, import prices trended down 
over the past year, falling 11.4 percent between August 2014 and August 2015. The 12-month drop in 
August was the largest year-over-year decline since the index fell 12.0 percent in September 2009.           

Fuel Imports: Import fuel prices declined 13.3 percent in August following a 5.7-percent fall the previous 
month. The August drop was the largest 1-month decrease since the index fell 20.1 percent in January. The 
decline in fuel prices was led by a 14.2-percent drop in August petroleum prices that followed a 5.9-percent 
decrease in July. In contrast, natural gas prices increased 0.9 percent in August. Overall fuel prices fell 48.3 
percent over the past year. A 49.6-percent decline in petroleum prices and a 34.4-percent drop in natural gas 
prices each factored into the 12-month fall in fuel prices.  

All Imports Excluding Fuel: The price index for nonfuel imports dropped 0.4 percent in August, after 
declining 0.3 percent in July and 0.2 percent in June. Nonfuel import prices last recorded a monthly advance 
when the index ticked up 0.1 percent in July 2014. In August, lower prices for nonfuel industrial supplies 
and materials as well as finished goods more than offset higher foods, feeds, and beverages prices. Prices for 
nonfuel imports decreased 3.0 percent for the year ended in August, the largest 12-month decline for the 
index since a 3.1-percent drop in October 2009.       

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

Exports 

All Exports: U.S. export prices decreased 1.4 percent in August following a 0.4-percent decline in July. 
Lower prices for both nonagricultural and agricultural exports contributed to the drop in August, which was 
the largest 1-month drop since a 1.7-percent decline in January. Prices for U.S. exports also decreased over 
the past 12 months, falling 7.0 percent, the largest year-over-year decline since the index fell 8.3 percent in 
July 2009.               

All Exports Excluding Agriculture: Nonagricultural export prices declined 1.3 percent in August, after 
decreases of 0.5 percent in July and 0.1 percent in June. The August drop was the largest monthly fall since 
the index declined 1.8 percent in January. Decreasing prices for nonagricultural industrial supplies and 
materials, consumer goods, and capital goods all contributed to the drop. The price index for nonagricultural 
exports declined 6.2 percent over the past year, the largest 12-month drop since the index fell 6.6 percent in 
July 2009.       

Agricultural Exports: The price index for agricultural exports fell 2.6 percent in August following a 1.1-
percent advance the previous month. The August decline was the largest 1-month drop since a 3.1-percent 
decrease in August 2014. The August 2015 drop was led by a 16.8-percent decline in wheat prices, a 4.0-
percent fall in soybean prices, and a 9.2-percent decrease in corn prices. Prices for overall agricultural 
exports declined 13.9 percent over the past 12 months.  

					  SELECTED AUGUST HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China edged down 0.1 percent in August, after a 0.2-
percent decline the previous month. Prices for imports from China have not recorded a monthly increase 
since the index rose 0.1 percent in December 2014. The price index for imports from Japan fell 0.2 percent 
in August following a 0.3-percent drop in July and a 0.5-percent decrease in June. Import prices from 
Canada, Mexico, and the European Union also declined in August, driven by lower fuel prices. Prices for 
imports from Canada fell 4.1 percent in August. August import prices from Mexico decreased 1.5 percent, 
and the price index for imports from the European Union declined 0.5 percent.                 

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials decreased 
1.8 percent in August following a 0.9-percent drop the previous month. The August decrease was driven by 
lower prices for unfinished metals and chemicals.   

Finished Goods: Prices for each of the major finished goods categories recorded decreases in August. 
Capital goods prices fell 0.2 percent, after a 0.3-percent decline in July. The index last recorded a monthly 
advance when prices for capital goods ticked up 0.1 percent in June 2014. Prices for automotive vehicles 
and consumer goods also decreased, declining 0.2 percent and 0.1 percent, respectively.           

Foods, Feeds, and Beverages: In contrast, August prices for import foods, feeds, and beverages advanced 
0.3 percent, after recording no change in July. The August increase was led by a 2.5-percent rise in the price 
index for fish and shellfish.            

Transportation Services: Import air passenger fares fell 5.1 percent in August following a 4.1-percent drop 
the previous month. Both declines were primarily led by a drop in European fares, although lower Asian 
fares were also a contributing factor. The decline in import air passenger fares over the past 2 months 
pushed the index down 3.2 percent over the past year. Import air freight prices decreased 2.0 percent in 
August, after falling 3.2 percent in July. The price index for import air freight declined 8.2 percent over the 
past year. 

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and 
materials decreased 3.7 percent in August, after a 1.5-percent decline the previous month. The August drop 
was driven by an 8.6-percent decrease in fuel prices.     

Finished Goods: Consumer goods prices fell 0.4 percent in August which followed a 0.3-percent decline in 
July. The decrease was led by a 0.6-percent drop in the price index for medicinal, dental, and 
pharmaceutical materials. Prices for capital goods also fell in August, edging down 0.1 percent, and the 
price index for automotive vehicles recorded no change.            

Transportation Services: Export air passenger fares rose 1.5 percent in August, after a 3.2-percent advance 
the previous month. Despite the recent advances, export air passenger fares fell 18.6 percent over the past 
year. Export air freight prices declined 0.8 percent in August and 1.7 percent over the past 12 months.        

Import and Export Price Index data for September 2015 are scheduled for release on Friday, October 9, 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.