All Imports: Import prices fell 0.6 percent in May, the first decline for the index since edging down 0.1 percent in February and the largest monthly drop since a similar 0.6 percent decrease in July 2009. Despite the May decline, import prices rose 8.6 percent over the past 12 months. Prices of overall imports have been up on a 12-month basis since declining 5.6 percent for the October 2008-09 period.
Fuel Imports: Fuel prices reversed the recent upward trend, falling 4.9 percent in May. The drop was the first one-month decrease since a 0.7 percent decline in February and the largest monthly decrease since a 22.2 percent fall in December 2008. The May decline was primarily driven by a 5.0 percent drop in petroleum prices, which accounted for approximately 95 percent of the decrease; natural gas prices fell as well, decreasing 3.5 percent. Fuel prices have trended up over most of the past year, rising 33.9 percent. The price indexes for petroleum and natural gas advanced for the year ended in May, rising 35.9 percent and 17.0 percent, respectively.
All Imports Excluding Fuel: In contrast to fuel prices, nonfuel prices continued to trend up in May, rising 0.5 percent. Nonfuel import prices last recorded a monthly decline in July 2009 and rose 3.6 percent over the past 12 months. A 1.9 percent increase in nonfuel industrial supplies and materials prices was the largest contributor to the overall advance, while foods, feeds, and beverages prices and finished goods prices advanced as well.
All Exports: Export prices rose 0.7 percent in May, the sixth time in the last seven months that the index increased by at least that magnitude. In May, higher prices for nonagricultural goods and agricultural goods each contributed to the advance, with the rise in nonagricultural prices accounting for approximately 78 percent of the overall increase. The price index for overall exports rose 5.8 percent for the year ended in May, the largest 12-month advance since a 7.0 percent increase between September 2007 and September 2008.
Agricultural Exports: The price index for agricultural exports increased 1.4 percent in May following a 0.4 percent downturn the previous month. A 5.5 percent increase in corn prices was the largest factor for the May advance, while meat, wheat, and soybeans prices also rose, up 3.2 percent, 6.4 percent, and 2.7 percent,respectively. Prices of agricultural exports advanced 1.3 percent over the past year.
All Exports Excluding Agriculture: Prices for nonagricultural exports increased 0.6 percent in May after rising 1.3 percent in April. A 1.9 percent increase in nonagricultural supplies and materials more than offset declining finished goods prices. Nonagricultural prices increased 6.2 percent over the May 2009-2010 period, led by an 18.0 percent increase for the price index of nonagricultural supplies and materials.
Import Prices
Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials increased 1.9 percent in May following a 3.1 percent advance the previous month. The May rise was driven by continued increases in unfinished metals prices, up 3.5 percent. That increase was in turn driven by higher prices for precious metals, iron and steel mill products, nickel, aluminum, and copper.
Finished Goods: Finished goods prices advanced overall, led by a 0.2 percent increase in capital goods prices and a 0.1 percent uptick in consumer goods prices. A 1.5 percent increase in the price index for computer accessories, peripherals, and parts was the largest contributor to the advance in capital goods prices, although higher prices for drilling and oil field equipment, up 2.0 percent, were also a factor.
Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages rose 1.4 percent in May after a 1.1 percent advance in April. A 3.7 percent increase in vegetable prices, a 2.7 percent advance in meat prices, and a 2.1 percent rise in fruit prices all contributed to the overall increase.
Imports by Locality of Origin: Prices of imports from China rose 0.3 percent in May after rising 0.2
percent in April. Those were the first monthly increases since a 0.2 percent advance in December and the May advance was the largest one-month gain since a 0.3 percent jump in August 2009. Import prices from the European Union and from Japan each rose 0.1 percent, while the price indexes for imports from Canada and from Mexico, down 0.6 percent and 1.0 percent, respectively, fell as the result of lower fuel prices.
Transportation Services: Import air passenger fares rose 2.8 percent in May, the result of a 6.6 percent increase in Asian fares and a 3.7 percent advance in European fares. The overall increase followed advances of 4.2 percent and 5.3 percent in April and March, respectively. The price index for import air freight prices increased 2.1 percent in May.
Export Prices
Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials
prices continued to trend upward in May, increasing 1.9 percent following a 3.2 percent advance the
previous month. The increase was led by a 4.2 percent advance in fuel prices that was driven by a sharp increase in coal prices. Higher prices for chemicals and metals also contributed to the advance.
Finished Goods: Finished goods prices, which had been trending up over the past year, fell overall in May with capital goods prices and consumer goods prices edging down 0.2 percent and 0.1 percent, respectively.
Those declines followed increases in April: capital goods prices rose 0.3 percent while prices for consumer goods advanced 1.0 percent. Automotive vehicle prices were unchanged in May.
Transportation Services: Export air passenger fares fell 0.7 percent in May following increases of 2.8 percent and 1.7 percent the two previous months. The decline was driven by a 6.9 percent drop in Latin American/Caribbean fares. Export air freight prices rose 1.1 percent in May.
Source: BLS
Original content Bob DeMarco, All American Investor
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