Transmission of material in this release is embargoed until                                 USDL-11-1325
8:30 a.m. (EDT) Tuesday, September 13, 2011

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                            U.S. IMPORT AND EXPORT PRICE INDEXES - AUGUST 2011

U.S. import prices declined 0.4 percent in August, the U.S. Bureau of Labor Statistics reported today, led 
by a 1.8 percent decrease in fuel prices. The August drop in import prices followed a 0.3 percent rise the 
previous month. In contrast, prices for U.S. exports rose 0.5 percent after declining 0.4 percent in July.


Imports
 	
All Imports: The price index for overall imports fell for the second time in three months in August, 
decreasing 0.4 percent following a 0.3 percent upturn in July and a 0.7 percent drop in June. Import prices 
declined 0.6 percent over the past four months after rising 13.7 percent between September 2010 and April 
2011. Overall, the index increased 13.0 percent for the year ended in August, compared to a 13.8 percent 
advance for the July 2010-11 period.

Fuel Imports: The August drop in overall import prices was driven by a 1.8 percent decline in fuel prices. 
The decrease was led by a 2.1 percent drop in petroleum prices which more than offset a 3.3 percent 
advance in the price index for natural gas. Despite declines in three of the past four months, fuel prices rose 
41.1 percent over the past year. Prices for petroleum and natural gas each increased over the past 12 months, 
rising 43.5 percent and 8.0 percent, respectively.  

All Imports Excluding Fuel: In contrast, nonfuel prices advanced 0.2 percent for the second consecutive 
month in August. The price indexes for nonfuel industrial supplies and materials, consumer goods, and 
capital goods all increased in August, while foods, feeds, and beverages prices declined and prices for 
automotive vehicles remained unchanged. Nonfuel prices rose 5.3 percent for the year ended in August, 
primarily driven by a 17.1 percent advance in the prices for nonfuel industrial supplies and materials.         

Table A. Percent changes

Exports

All Exports: Export prices resumed an upward trend in August, rising 0.5 percent following a 0.4 percent 
downturn in July. Higher prices for agricultural and nonagricultural exports each contributed to the overall 
advance in August. The price index for overall exports also increased over the past year, increasing 9.6 
percent.

Agricultural Exports: Agricultural export prices advanced 2.2 percent in August after declining 3.9 percent 
the previous month. In August, rising prices for corn, soybeans, and wheat, up 8.1 percent, 2.3 percent, and 
5.6 percent, more than offset an 11.3 percent drop in cotton prices. The price index for agricultural exports 
advanced 23.9 percent over the past 12 months, primarily led by a 73.7 percent increase in corn prices, 
although higher prices for soybeans, cotton, meat, and wheat also contributed to the overall increase.  

All Exports Excluding Agriculture: The price index for nonagricultural prices rose 0.3 percent in August 
after ticking up 0.1 percent in July. A 0.6 percent advance in nonagricultural industrial supplies and materials 
prices was the largest contributor to the increase. Prices for consumer goods and automotive vehicles also 
rose, while capital goods prices recorded no change. Nonagricultural export prices increased 8.1 percent for 
the year ended in August.   
 				


                                      SELECTED AUGUST HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices advanced 0.9 
percent in August following a 0.6 percent rise in July. The August increase was led by higher prices for 
unfinished metals, notably a 3.2 percent increase in nonmonetary gold prices and a 5.4 percent advance in 
the price index for other precious metals.         

Finished Goods: Prices for finished goods were mostly up in August. Consumer goods prices rose 0.3 
percent and were driven by a 1.8 percent increase in the price index for cotton apparel and household goods, 
which also increased 13.1 percent over the past year. Capital goods prices ticked up 0.1 percent despite a 0.4 
percent drop in computer, peripheral, and semiconductor prices.        
 
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices fell 0.8 percent in August, led by a 12.9 
percent drop in coffee prices. Prior to the August downturn, coffee prices had trended up since early 2010, 
rising 102.2 percent from March 2010 to July 2011. 

Imports by Locality of Origin: The price index for imports from China ticked up 0.1 percent in August, the 
smallest monthly increase since the index was unchanged in September 2010. Import prices from China rose 
3.6 percent over the past year, the largest 12-month advance since a 4.3 percent increase in October 2008. 
Import prices from Japan also rose in August, increasing 0.2 percent after a 0.2 percent drop the previous 
month. In contrast, the price indexes for imports from Mexico, Canada, and the European Union all 
decreased in August, down 0.9 percent, 0.2 percent, and 0.1 percent, respectively.  

Transportation Services: The index for import air passenger fares declined 3.0 percent in August, led by a 
6.6 percent drop in European fares. Despite the decline, import air passenger fares advanced 7.4 percent over 
the past 12 months. Import air freight prices increased 0.6 percent in August and 13.9 percent over the past 
year.    

Export Prices
 
Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and 
materials rose 0.6 percent in August after edging down 0.1 percent in July. The August increase was driven 
by a 3.0 percent increase in nonferrous metals prices which more than offset lower fuel prices.      
 
Finished Goods: The price indexes for consumer goods and automotive vehicles each increased in August. 
The 0.2 percent increase in consumer goods prices followed a 0.6 percent increase in July. Automotive 
vehicles prices advanced 0.4 percent in August, led by a 0.6 percent rise in passenger cars.             

Transportation Services: Export air passenger fares rose 9.7 percent in August after increasing a similar 9.8 
percent in July. The August advance was driven by a 24.8 percent jump in Asian fares, while increases in 
European, Asian, and Latin American/Caribbean fares all contributed to the increase in July. The index for 
export air passenger fares rose 19.4 percent for the year ended in August. Export air freight prices fell 0.6 
percent in August, but increased 16.4 percent over the past 12 months.
		
Import and Export Price Index data for September 2011 are scheduled for release on Friday, October 
14, 2011 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.