Transmission of material in this release is embargoed until                            USDL-14-1898
8:30 a.m. (EDT) Friday, October 10, 2014

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                         U.S. IMPORT AND EXPORT PRICE INDEXES - SEPTEMBER 2014

Prices for U.S. imports fell 0.5 percent in September, after declining 0.6 percent in August and 0.3 percent 
in July, the U.S. Bureau of Labor Statistics reported today. Each of the 3 monthly decreases was led by 
falling fuel prices. The price index for U.S. exports also declined in September, decreasing 0.2 percent 
following a 0.5-percent drop in August.

Imports

All Imports: Overall import prices continued a 3-month downward trend in September, falling 0.5 percent. 
Prices for imports decreased 1.4 percent from June to September, the largest quarterly drop since the index 
declined 1.4 percent during the final quarter of 2013. In September, fuel prices drove the decrease, although 
nonfuel prices also declined. The price index for overall imports fell 0.9 percent for the year ended in 
September, the largest 12-month decrease since the index fell 1.1 percent in February.

Fuel Imports: Prices for import fuel decreased 2.1 percent in September following a 3.1-percent drop in 
August and a 1.5-percent decline in July. Lower petroleum and natural gas prices contributed to the 
September decline, falling 2.0 percent and 5.0 percent, respectively. Fuel prices decreased 5.8 percent over 
the past 12 months, the largest year-over-year decline since the index fell 8.1 percent between April 2012 
and April 2013. The decrease in fuel prices over the past year was led by a 6.6-percent drop in petroleum 
prices which more than offset a 35.6-percent increase in natural gas prices.

All Imports Excluding Fuel: Nonfuel import prices edged down 0.1 percent in September, after recording 
no change the previous month. In September, lower prices for nonfuel industrial supplies and materials and 
automotive vehicles more than offset an increase in the price index for foods, feeds, and beverages. Despite 
the decline, prices for nonfuel imports rose 0.5 percent over the past year. Higher prices for consumer 
goods; nonfuel industrial supplies and materials; and foods, feeds, and beverages all contributed to the 
advance.

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

Exports

All Exports: The price index for exports declined 0.2 percent in September, which continued an overall 
downward trend for the index since April. In September, lower prices for both agricultural exports and 
nonagricultural exports contributed to the decline. Export prices decreased 0.2 percent for the year ended in 
September, the first 12-month decline for the index since a 0.1-percent drop in April. 

Agricultural Exports: Agricultural prices declined 0.9 percent in September following declines of 3.0 
percent, 1.8 percent, and 1.9 percent over the previous 3 months. In September, the decrease was driven by a 
6.2-percent drop in soybean prices, a 2.1-percent decline in meat prices, and a 3.9-percent fall in corn prices. 
The price index for agricultural exports fell 2.9 percent over the past year, led by lower prices for soybeans 
and corn.

All Exports Excluding Agriculture: Prices for nonagricultural exports declined 0.2 percent for the second 
consecutive month in September. Decreasing prices for nonagricultural industrial supplies and materials, 
consumer goods, and automotive vehicles all contributed to the drop in overall nonagricultural prices. The 
price index for nonagricultural prices recorded no change for the year ended in September. Each of the 
major finished goods categories rose over the past 12 months, while nonagricultural industrial supplies and 
materials prices declined. 

                                  SELECTED SEPTEMBER HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China edged down 0.1 percent in September, after 
recording no change in August. The September decline was led by lower prices for computers and electronic 
equipment. Prices for imports from Japan also decreased 0.1 percent in September, after remaining 
unchanged the previous month. The price indexes for imports from the European Union, Canada, and 
Mexico all decreased in September, falling 0.9 percent, 0.7 percent, and 0.4 percent, respectively. Lower 
fuel prices contributed to these declines.

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials decreased 
0.2 percent in September, after recording no change the previous month. In September, the decrease was 
driven by a 0.5-percent drop in unfinished metals prices, which was led by lower prices for gold and other 
precious metals.

Finished Goods: The price indexes for each of the major finished goods areas were mostly unchanged for 
the second consecutive month in September. Automotive vehicles prices fell 0.1 percent in September, after 
ticking up 0.1 percent in August. In September, prices for capital goods were unchanged for the third 
consecutive month and prices for consumer goods were unchanged for the second consecutive month.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices increased 0.2 percent in September 
following a 0.6-percent advance in August and a 1.1-percent rise in July. The September advance was 
driven by a 2.2-percent rise in fish and shellfish prices and a 2.4-percent increase in vegetable prices.

Transportation Services: Import air passenger fares decreased 0.3 percent in September following a 4.3-
percent decline in August and a 2.8-percent drop in July. The September fall was led by a 7.2-percent 
decrease in Asian fares, after the 2 previous monthly declines were driven mostly by lower European fares. 
Despite the recent drops, the index for import air passenger fares increased 6.3 percent for the year ended in 
September. Import air freight prices declined 0.5 percent in September, the largest monthly drop since a 0.5-
percent decline in April. Prices for import air freight rose 1.3 percent over the past year.

Export Prices

Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial 
supplies and materials declined 0.5 percent in September following a 0.7-percent drop the previous month. 
Falling fuel and gold prices contributed to both decreases. 

Finished Goods: Capital goods prices ticked up 0.1 percent in September, after recording no change in 
August. In contrast, the price indexes for consumer goods and automotive vehicles each declined in 
September, falling 0.2 percent and 0.1 percent, respectively. Consumer goods prices were unchanged the 
previous month while automotive vehicles prices decreased 0.2 percent.

Transportation Services: Export air passenger fares fell 11.1 percent in September, the largest monthly 
drop since the index declined 12.5 percent in February. The September decrease was caused by a 23.0-
percent decline in Asian fares. Despite the September drop, export air passenger fares increased 2.9 percent 
over the past 12 months. Export air freight prices edged down 0.1 percent in September and advanced 8.6 
percent over the past year. 

Import and Export Price Index data for October 2014 are scheduled for release on Friday, November 
14, 2014 at 8:30 a.m. (EST).

                                            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.