U.S. Import and Export Price Index – September 2022
U.S. import prices decreased 1.2 percent in September, after declining 1.1 percent the previous month, the U.S. Bureau of Labor Statistics reported today. Lower fuel and nonfuel prices in September contributed to the drop in U.S. import prices. Prices for U.S. exports fell 0.8 percent in September following a 1.7-percent decline in August.
Chart 1. One-month and 12-month percent changes in the Import Price Index: September 2021 – September 2022
Imports
The price index for U.S. imports decreased 1.2 percent in September and 3.7 percent in the third quarter of 2022. The quarterly drop was the largest 3-month decline since the index fell 4.3 percent for the 3 months ended May 2020. Prices for U.S. imports rose 6.0 percent over the past year, the smallest 12-month advance since the index rose 3.0 percent for the year ended February 2021. (See table 1.)
Fuel Imports: Prices for import fuel fell 7.5 percent for the second consecutive month in September. Those were the largest 1-month declines since the index decreased 7.7 percent in December 2021. Despite the recent declines, import fuel prices rose 32.3 percent from September 2021 to September 2022. Lower prices in September for petroleum and natural gas contributed to the overall drop in import fuel prices. Petroleum prices decreased 7.5 percent in September, after declining 8.3 percent in August. The price index for natural gas fell 10.5 percent in September following a 3.5-percent advance the previous month. Petroleum prices rose 31.5 percent for the year ended in September and natural gas prices advanced 49.1 percent over the same period.
All Imports Excluding Fuel: Nonfuel import prices decreased 0.4 percent in September, after declining 0.2 percent the previous month. Prices for nonfuel imports have not advanced on a monthly basis since a 0.4percent increase in April 2022. Lower prices in September for nonfuel industrial supplies and materials more than offset higher prices for foods, feeds, and beverages. Despite the recent drops, nonfuel import prices rose 3.4 percent for the year ended in September.
Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages advanced 0.2 percent in September, the first 1-month increase since a 0.9-percent rise in April 2022. A 12.2-percent advance in vegetable prices in September more than offset a 6.9-percent decline in fruit prices.
Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials fell 1.9 percent in September following a 0.4-percent drop in August. The September decrease was led by lower prices for unfinished metals, chemicals, finished metals, and selected building materials.
Finished Goods: Each of the major finished goods categories was unchanged in September. Capital goods prices were unchanged following a 0.1-percent decrease in August. The price index for consumer goods was unchanged in September, after ticking up 0.1 percent the previous month. Consumer goods prices have not recorded a monthly drop since June 2022. Prices for automotive vehicles were unchanged in September following a revised 0.3-percent drop the previous month. The August decline was the first 1-month decrease since November 2020 and the largest monthly drop since January 2019.
Exports:
U.S. export prices declined 0.8 percent in September and 6.2 percent in the third quarter of 2022. The quarterly drop was the largest 3-month decrease since the index fell 7.3 percent from September to December 2008. Lower agricultural and nonagricultural prices each contributed to the September decline. Prices for U.S. exports rose 9.5 percent over the past year, the smallest 12-month advance since a 5.4percent increase in February 2021. (See table 2.)
Agricultural Exports: The price index for agricultural exports decreased 1.0 percent in September, after falling 0.5 percent the previous month. Lower prices for soybeans, fruit, meat, and nuts led the September decline. Agricultural export prices increased 12.6 percent over the past 12 months and have not decreased on an over-the-year basis since the index fell 2.9 percent from August 2019 to August 2020.
All Exports Excluding Agriculture: Nonagricultural prices declined 0.9 percent in September following drops of 1.8 percent in August and 3.8 percent in July. Lower prices in September for nonagricultural industrial supplies and materials and consumer goods more than offset higher prices for capital goods, nonagricultural foods, and automotive vehicles. Despite the recent decreases, prices for nonagricultural exports increased 9.2 percent over the past 12 months.
Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and materials exports fell 1.8 percent in September following a 3.8-percent decline in August. Lower prices for chemicals, fuels, and nonferrous metals all contributed to the September decrease.
Finished Goods: Prices were mixed for the major finished goods categories in September. The price indexes for capital goods and automotive vehicles each increased 0.2 percent. The advance in capital goods prices was led by higher computer prices. The rise in automotive vehicles prices was driven by higher parts prices. In contrast, prices for consumer goods exports declined 0.3 percent in September, the first monthly decrease since May 2022.
Measures of Imports/Exports Prices
Imports by Locality of Origin: Prices for imports from China ticked up 0.1 percent in September, after edging down 0.1 percent in each of the previous 2 months. The September advance was the first increase since April 2022. The price index for imports from China increased 2.0 percent over the past year. Import prices from Japan rose 0.1 percent in September following declines of 0.1 percent in August and 0.2 percent in July. Prices for imports from Japan advanced 1.2 percent for the year ended in September. In contrast, import prices from Canada fell 3.6 percent in September, after decreasing 3.3 percent the previous month. Despite the declines, prices for imports from Canada rose 16.3 percent over the past 12 months. The price indexes for imports from the European Union and Mexico also fell in September, decreasing 0.5 percent and 0.1 percent, respectively.
Exports by Locality of Destination: Export prices to China fell 2.2 percent in September following declines of 1.7 percent in August and 4.6 percent in July. Despite declining 8.3 percent in the third quarter of 2022, prices for exports to China advanced 5.2 percent for the year ended in September. The price index for exports to Japan decreased 2.0 percent in September, after a 2.2-percent drop the previous month. Export prices to Japan have not recorded a monthly increase since May. Prices for exports to Japan rose 7.2 percent over the past 12 months. The price index for exports to Canada fell 1.1 percent in September following a 0.2-percent drop in August. Export prices to Canada advanced 8.8 percent over the past year, the smallest 12-month increase since February 2021. Prices for exports to the European Union and Mexico also declined in September, decreasing 1.3 percent and 1.4 percent, respectively.
Terms of Trade Indexes: Terms of trade indexes are based on country, region, or grouping and measure the change in the purchasing power of exports relative to imports. U.S. terms of trade with China fell 2.3 percent in September and 8.2 percent in the third quarter of 2022. Lower export prices to China and higher import prices from China both contributed to the September drop in U.S. terms of trade with China. Despite the recent decreases, U.S. terms of trade with China increased 3.3 percent over the past year. The index for U.S. terms of trade with Japan fell 2.2 percent in September, after declining 2.1 percent the previous month. In contrast, the index for U.S. terms of trade with Canada rose 2.6 percent in September following 3.3percent advances in August and July. U.S. terms of trade with the European Union and Mexico fell in September, down 0.8 percent and 1.2 percent, respectively.
Article and Charts Courtesy of the U.S Bureau of Labor Statistics.