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

U.S. import prices declined 0.6 percent in October, the U.S. Bureau of Labor Statistics reported today, after 
recording no change in September. Decreasing prices for both nonfuel and fuel imports contributed to the 
October drop. Export prices fell 2.1 percent in October, the largest monthly decline since a 2.2 percent 
decrease in December 2008.


Imports
 	
All Imports: Import prices fell for the third time in five months in October, declining 0.6 percent for the 
month. The decrease matched a 0.6 percent decline in June, the largest one-month drop since the index fell 
1.2 percent in June 2010. The price index for overall imports fell 1.4 percent over the past five months, 
primarily driven down over that period by declining fuel prices. Despite the recent decreases, import prices 
advanced 11.0 percent over the past year.   

Fuel Imports: Fuel prices fell 1.3 percent in October, following declines of 0.7 percent in September and 
2.1 percent in August. Approximately 73 percent of the October decrease was attributable to a 1.0 percent 
drop in petroleum prices, and a 10.9 percent decline in natural gas prices was also a contributing factor. 
Despite the recent declines, fuel prices increased 33.8 percent for the year ended in October. Petroleum and 
natural gas prices advanced 36.0 percent and 1.4 percent, respectively, over the past 12 months.   

All Imports Excluding Fuel: The price index for nonfuel imports declined 0.2 percent in October, the first 
monthly decrease in the index since a 0.3 percent drop in July 2010. The October decline followed 0.2 
percent increases in each of the previous three months, and was led by falling prices for nonfuel industrial 
supplies and materials, capital goods, and foods, feeds, and beverages, which more than offset rising prices 
for consumer goods and automotive vehicles. Nonfuel import prices rose 4.9 percent for the year ended in 
October.          

Table A. Percent changes

Exports

All Exports: Overall export prices fell 2.1 percent in October, driven lower by falling prices for both 
nonagricultural and agricultural exports. The October decline followed advances of 0.4 percent and 0.5 
percent the two previous months. Despite the October drop, overall export prices increased 6.3 percent over 
the past year. 

Agricultural Exports: Agricultural prices decreased 6.5 percent in October after rising 1.9 percent in 
September and 1.6 percent in August. The October decline was led by 19.0 percent decreases for both 
soybeans and corn. Despite the recent decline, the price index for agricultural exports rose 11.5 percent for 
the year ended in October. Higher prices for corn, meat, wheat, fish, and soybeans all contributed to the 12-
month advance in agricultural prices.    

All Exports Excluding Agriculture: Prices for nonagricultural exports declined 1.5 percent in October, the 
first monthly decrease since a 0.2 percent drop in July 2010, and the largest drop since a 1.9 percent decline 
in December 2008. The October decrease was primarily driven by falling nonagricultural industrial supplies 
and materials prices. The price index for nonagricultural exports increased 5.7 percent over the past 12 
months.   
 				


                                       SELECTED OCTOBER HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 1.4 percent 
in October following a 0.6 percent advance in September. The October decrease was mostly led by a 4.1 
percent decline in unfinished metals prices. A 10.0 percent drop in other precious metals prices and a 10.2 
percent decrease in copper prices were the main contributors to the decline in the price index for unfinished 
metals. Despite the October decline, unfinished metals prices rose 16.5 percent over the past year.          

Finished Goods: Finished goods prices were mixed in October. Prices for consumer goods rose 0.7 percent, 
the largest monthly increase since a 1.0 percent advance in October 1992. Automotive prices also rose in 
October, ticking up 0.1 percent. In contrast, prices for capital goods fell 0.3 percent, led by lower computer 
and semiconductor prices, down 1.7 percent and 1.6 percent, respectively.       
 
Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages fell 1.0 percent in October, 
led by a 10.7 percent decline in food oil and oilseeds prices and a 4.4 percent drop in prices for fruit and 
fruit preparations.  

Imports by Locality of Origin: Prices for imports from China advanced 0.4 percent in October and 3.9 
percent over the past 12 months, the largest year-over-year advance for the index since a 4.3 percent increase 
in October 2008. The price index for imports from the European Union also rose 0.4 percent in October. In 
contrast, prices for imports from Canada and Mexico each fell in October, declining 1.4 percent and 0.7 
percent, respectively. Import prices from Japan were unchanged in October.   

Transportation Services: The index for import air passenger fares rose 1.9 percent in October, driven by 2.0 
percent increases for European fares and for Latin American/Caribbean fares.  The October rise was the first 
increase since a 6.8 percent advance in June. Import air freight prices decreased 2.3 percent in October.   

Export Prices
 
Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials 
prices declined 3.7 percent in October, the largest monthly decrease for the index since a 5.8 percent drop in 
December 2008. A 5.6 percent drop in petroleum prices and a 5.8 percent decline in the price index for 
nonferrous metals were the largest contributors to the October decrease.      
  
Finished Goods: Prices for consumer goods fell 0.3 percent in October following a 0.2 percent increase the 
previous month. In contrast, automotive vehicles prices ticked up 0.1 percent in October. The increase was 
driven by higher prices for passenger cars, which advanced 0.9 percent, an increase that was largely offset 
by a 3.4 percent decline in the price index for engines and engine parts. Prices for capital goods recorded no 
change in October.             

Transportation Services: Export air passenger fares fell 2.3 percent in October after a 13.4 percent drop in 
September. The October decrease was led by lower fares from Asia and from the Latin America/Caribbean 
region. Export air freight prices fell 0.8 percent in October.
		
Import and Export Price Index data for November 2011 are scheduled for release on Wednesday, 
December 14, 2011 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).  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.  
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