Import Prices Rise, Export Prices Fall

Import Goods/Prices

Import prices increased for the first time since July, advancing 0.5 percent in March after edging down 0.1 percent in February. The March advance was led by a 10.5 percent rise in petroleum prices.

The price index for petroleum increased for the second consecutive month after falling 69.2 percent from July through January. In contrast, nonpetroleum prices decreased for the eighth consecutive month, falling 0.7 percent in March. For the year ended in March, petroleum prices fell 52.0 percent and prices for nonpetroleum imports declined 3.7 percent.

Prices for foods, feeds, and beverages decreased 1.0 percent this month primarily because of
lower fruit prices. The March drop followed a 3.2 percent decline in February.

Export Goods/Prices

Export prices decreased 0.6 percent in March because of lower prices for both agricultural and nonagricultural exports. The index decreased 9.8 percent over the past eight months and 6.7 percent for the year ended in March. Agricultural prices fell 3.5 percent in March, led by declines for soybeans, corn, and wheat.

Imports by Locality of Origin

Prices for imports from China fell for the seventh consecutive month, decreasing 0.6 percent in March. Import prices from China edged down 0.2 percent for the year ended in March.

Import prices from Canada and from Mexico also continued to decline in March, falling 0.7 percent and 0.1 percent, respectively. Prices for imports from Canada fell for the eighth consecutive month, and decreased 18.4 percent over the past year, the largest annual decline since the index was first published in December 1990. The price index for imports from Mexico decreased 11.7 percent for the
March 2008-2009 period, the largest annual decline since the index was first published in December 2003.

Import and Export Services

Import air passenger fares decreased 4.7 percent in March following a 4.6 percent drop the previous month. The March decrease was again led by lower European fares, which fell 7.8 percent after decreasing 5.7 percent in February. Despite the recent downward pattern, the index for import air passenger fares rose 2.7 percent for the year ended in March. Export air passenger fares also decreased in March, falling 5.1 percent as lower fares from Europe, the Latin America/Caribbean region, and Asia
all contributed to the overall decrease. Fares for export air passengers decreased 10.5 percent over the past 12 months, the largest annual decline since the index was first published in September 1986.

Import air freight prices fell 2.2 percent in March, as both European and Asian air freight prices declined. The price index for import air freight decreased 8.0 percent over the past year. Prices for export air freight declined 2.8 percent in March and 7.0 percent for the March 2008-2009 period.

Subscribe to All American Investor via Email

Kindle 2: Amazon's New Wireless Reading Device (Latest Generation)

Follow All American Investor on Twitter