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

U.S. import prices increased 0.3 percent in July, the U.S. Bureau of Labor Statistics reported today, after declining 0.6 percent the previous month.

Rising prices for both fuel and nonfuel imports contributed to the overall increase. In contrast, U.S. export prices fell 0.4 percent in July, the first decrease since the index declined 0.2 percent in July 2010.

All American Investor


Imports

All Imports: Import prices increased 0.3 percent in July, following a 0.6 percent decline in June. Over the past three months, import prices edged down 0.1 percent, after increasing 13.7 percent in the seven months prior to May. Import prices rose 14.0 percent for the year ended in July, the largest 12-month advance since the index increased 18.1 percent for the year ended in August 2008. Higher prices for both fuel and nonfuel imports contributed to the increase over the past 12 months.

Fuel Imports: Fuel prices advanced 0.4 percent in July, following a 2.1 percent decline in June. Rising prices for petroleum, which increased 0.6 percent, contributed the most to the July advance. Fuel prices rose 45.5 percent for the year ended in July, led by a 48.9 percent increase in petroleum prices over the same period. In contrast, natural gas prices declined 3.6 percent in July and fell 0.9 percent over the past year.

All Imports Excluding Fuel: The price index for imports excluding fuel increased 0.2 percent in July, following a 0.1 percent decline in June. Higher prices for consumer goods as well as nonfuel industrial supplies and materials, up 0.4 percent and 0.7 percent, respectively, were the principal contributors to the increase in nonfuel prices. Prices for nonfuel imports increased 5.5 percent over the past 12 months, the largest year-over-year rise since a 6.1 percent advance between September 2007 and September 2008. In contrast, automotive vehicle prices declined 0.3 percent in July, while prices for capital goods remained unchanged.

Exports

All Exports: Export prices declined in July, falling 0.4 percent following a 0.1 percent uptick in June. The drop in July was the first decrease since the index fell 0.2 percent in July 2010. The downturn was led by a decline in the price index for agricultural commodities, which was partially offset by an advance in nonagricultural prices. Export prices rose 9.8 percent over the past 12 months, down from the 10.1 percent change for the year ended in June, which was the largest year-over-year increase in export prices since a 10.2 percent advance between July 2007 and July 2008.

Agricultural Exports: The price index for agricultural exports fell 4.3 percent in July, the largest decrease since a 4.9 percent decline in July 2009. Falling prices for cotton, corn, wheat, and soybeans, down 13.5 percent, 11.5 percent, 17.9 percent, and 4.4 percent, respectively, all contributed to the overall decline. Despite decreasing in three of the last four months, the index advanced 25.9 percent for the year ended in July.

All Exports Excluding Agriculture: Nonagricultural prices rose 0.2 percent in July after a 0.1 percent increase in June. Higher consumer goods prices and prices for automotive vehicles each contributed to the overall increase in nonagricultural prices in July. Over the past year, the index for nonagricultural prices rose 8.3 percent, the largest 12-month increase since the index was first published in 1985.

More




Original content Bob DeMarco, All American Investor