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                        U.S. IMPORT AND EXPORT PRICE INDEXES - SEPTEMBER 2017

U.S. import prices increased 0.7 percent in September, the U.S. Bureau of Labor Statistics reported today, 
after advancing 0.6 percent in August. The price index for U.S. exports rose 0.8 percent in September, after 
increasing 0.7 percent the previous month.


Hurricane Harvey and Irma: Hurricanes Harvey and Irma had a small impact on the collection of the 
import and export price index data for September, but no change in the estimation procedures. For more 
information on the impact, please see https://www.bls.gov/bls/hurricanes-harvey-irma-maria.htm. 


Imports

All Imports: Import prices rose 0.7 percent in September, the largest monthly rise since an increase of 0.7 
percent in June 2016. The last time import prices advanced by more than 0.7 percent was a 1.2-percent 
increase in May 2016. Higher prices for both fuel and nonfuel imports contributed to the overall rise in 
import prices for September. Prices for U.S. imports also increased on a 12-month basis, advancing 2.7 
percent. 

Fuel Imports: Fuel prices increased 3.9 percent in September, after rising 4.4 percent in August. The 
monthly movements were the first advances since the index rose 0.3 percent in February, and the August 
rise was the largest advance since the index increased 6.1 percent in January. Prior to August, prices for 
import fuel fell 8.2 percent between February and July. The September advance was driven by a 4.5-percent 
rise in petroleum prices which more than offset a 7.8-percent drop in natural gas prices. Between September 
2016 and September 2017 the price index for import fuel increased 18.2 percent, led by a 20.1-percent 
advance in petroleum prices over the same period. Prices for natural gas declined 16.3 percent for the year 
ended in September.   

All Imports Excluding Fuel: The price index for nonfuel imports advanced 0.3 percent in September, 
following an identical increase in August. The major end-use categories largely increased in September and 
contributed to the rise in overall import prices. The most significant contributor was a 1.4-percent advance 
in nonfuel industrial supplies and materials prices, although rising prices for foods, feeds, and beverages, 
capital goods, and automotive vehicles also contributed to the September advance in nonfuel prices. Prices 
for nonfuel imports increased 1.3 percent for the year ended in September. 

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

Exports

All Exports: U.S. export prices rose 0.8 percent in September following a 0.7-percent increase in August. 
The September advance was the largest monthly rise since an increase of 0.8 percent in June 2016. The last 
time the index increased by more than 0.8 percent was a 1.1-percent advance in May 2016. Prices for 
exports rose 2.9 percent over the past year. The September advance was driven by rising prices for 
nonagricultural commodities; agricultural export prices decreased in September.

Agricultural Exports: The price index for agricultural exports declined 0.7 percent in September, the first 
monthly decrease since the index fell 1.4 percent in June. Lower prices for meat, wheat, and corn drove the 
September decline. Despite the monthly decrease, export agricultural prices rose 2.2 percent over the past 
year, driven by increasing meat, wheat, and vegetable prices over the 12-month period.

All Exports Excluding Agriculture: Nonagricultural export prices increased 1.0 percent in September 
following an advance of 0.8 percent in August. Rising prices for nonagricultural industrial supplies and 
materials drove the overall increase in nonagricultural export prices in September, though higher prices for 
capital goods and automotive vehicles also contributed. The price index for nonagricultural exports 
advanced 3.0 percent for the year ended in September, led by rising nonagricultural industrial supplies and 
materials prices. 


                                    SELECTED SEPTEMBER HIGHLIGHTS


Import Prices

Imports by Locality of Origin: Import prices from China recorded no change in September, after edging 
down 0.1 percent in August. Prices for imports from China fell 0.7 percent for the year ended in September, 
the smallest over-the-year decline since the index fell 0.5 percent between April 2014 and April 2015. 
Import prices from Japan advanced 0.2 percent in September, the first monthly increase since the index rose 
0.2 percent in March. In September, rising petroleum prices contributed to higher import prices from 
Canada, the European Union, and Mexico. Import prices from Canada rose 0.5 percent, the price index for 
European Union imports advanced 0.3 percent, and prices for imports from Mexico increased 1.4 percent. 

Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials 
rose 1.4 percent in September, after increasing 1.0 percent in August. Contributing to the September 
advance were a 4.4-percent increase in unfinished metals prices and a 1.8-percent rise in prices for finished 
metals. 

Finished Goods: Import prices for the finished goods categories were mixed in September. Prices for 
capital goods rose 0.1 percent following an identical increase in August. The advance was driven by a 1.6-
percent rise in prices for excavating, paving, and construction machinery. The price index for automotive 
vehicles rose 0.1 percent and the price index for consumer goods fell 0.1 percent. 

Foods, Feeds, and Beverages: Import foods, feeds, and beverages prices advanced 1.8 percent in 
September, the largest increase since a 3.1-percent rise in July 2016. The increase was led by a 12.5-percent 
rise in fruit prices which more than offset falling fish and shellfish prices.

Transportation Services: Import air passenger fares rose 8.5 percent in September after declining 10.6 
percent in August. Higher European and Asian fares contributed to the September advance, which was the 
largest monthly increase since the index rose 8.9 percent in June 2015. Import air passenger fares decreased 
3.7 percent over the past year. The price index for import air freight rose 0.4 percent in September and 19.6 
percent over the past 12 months. 


Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials 
export prices increased 3.1 percent in September after a 1.9-percent advance in August. The September 
increase was led by a 6.6-percent rise in fuel prices, with higher prices for nonferrous metals and chemicals 
also contributing to the overall advance.

Finished Goods: Export price indexes for both capital goods and automotive vehicles rose 0.1 percent in 
September. Capital goods prices have not recorded a monthly decline since a 0.1-percent drop in October 
2016, and the index advanced 1.2 percent over the past 12-months. The September increase was the second 
consecutive month in which prices for automotive vehicles advanced 0.1 percent, led by higher prices for 
passenger cars. The price index for consumer goods recorded no change in September. 

Transportation Services: Export air passenger fares declined 8.7 percent in September, driven by a 20.7-
percent decline in Asian fares which more than offset a 13.5-percent increase in European fares. Despite the 
September decline, the index rose 1.2 percent from September 2016 to September 2017. The price index for 
export air freight rose 0.2 percent in September and 3.1 percent over the past 12 months.

Import and Export Price Index data for October 2017 are scheduled for release on Thursday, November 16, 
2017 at 8:30 a.m. (EST).

                                         TECHNICAL NOTE


Announcement - The Bureau of Labor Statistics is utilizing new index estimation and review systems 
for the import and export price indexes effective with the release of the June 2017 price data on July 18, 
2017. The new estimation and index review systems, the first major improvement to the existing 
systems in over 20 years, are redesigned, state-of-the-art systems with improved flexibility and review 
capabilities. The changes to the systems will not have a significant effect on the estimates of price 
change for the U.S. import and export price indexes.

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 2-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 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 Producer Price Index (PPI) 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 indexes and excluded from 
the export air passenger fares indexes. 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 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 3 months after original publication. After 3 months, no further data 
revisions take place. For example, data first published 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 (NIPA) 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 NIPA, 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.

Email Subscription - The U.S. import and export price indexes news release is available through an 
email subscription service at www.bls.gov/bls/list.htm. 

Additional Information - More detailed data are available on the Import/Export Price Indexes home 
page at www.bls.gov/mxp. For import and export price indexes data requests, send an email 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.