percent increase in nonpetroleum prices was offset by a 0.6 percent decline in the price index for petroleum. U.S. export prices advanced 0.4 percent in December following a 0.9 percent rise in November.
Prior to recording no change in December, the price index for overall imports rose in each of the past three months including a 3.3 percent jump in November. Import prices rose 10.9 percent over 2007, the sixth consecutive year the index increased and the largest calendar-year advance since the index was first published in September 1982. The 2007 increase was driven by a sharp rise in petroleum prices and paralleled a drop in the value of the dollar.
Petroleum prices decreased 0.6 percent in December, recording the first monthly decline since August. Despite the December drop, petroleum prices led the overall increase in import prices over the past year, rising 50.1 percent over that period. The increase was the largest yearly advance since a 56.9 percent rise in 2002.
Nonpetroleum prices advanced 0.3 percent in December following increases of 0.7 percent in November and 0.6 percent in October. Prices for nonpetroleum imports rose 2.9 percent for the year after increasing 1.9 percent in 2006. The index rose for the sixth consecutive year and the 2007 increase was the largest since a 3.7 percent advance in 2004.
The December increase in nonpetroleum prices was primarily led by a 0.7 percent increase in the price index for nonpetroleum industrial supplies and materials. That increase followed advances of 2.6 percent in November and 1.5 percent in October and was driven by higher prices for chemicals and natural gas. Nonpetroleum industrial supplies and materials prices rose 6.9 percent over the past year.
The price indexes for consumer goods, automotive vehicles, and foods, feeds, and beverages all increased in December as well. Consumer goods prices and prices for automotive vehicles each rose 0.2 percent for the month and 1.6 percent over the past year. Prices for foods, feeds, and beverages advanced 0.6 percent in December and 9.3 percent over 2007.
Capital goods prices were unchanged in December as a decline in computer prices offset a 0.3 percent increase in prices of capital goods
excluding computers. Overall, capital goods prices rose 0.8 percent over the past 12 months.
Export Goods
Higher prices for both agricultural exports and nonagricultural exports each contributed to the 0.4 percent increase in export prices. Overall, export prices rose 6.0 percent over 2007 compared to smaller increases of 2.8 percent over 2005 and 4.5 percent over 2006. The 2007 advance was the sixth consecutive annual rise and the largest calendar-year increase since a 6.2 percent advance in 1988.
Higher agricultural prices continued to factor into the overall increase in export prices, rising 2.7 percent in December after increases of 1.4 percent, 3.8 percent, and 4.2 percent, respectively in November, October, and September. The December advance was led by a 14.7 percent jump in wheat prices, although higher prices for soybeans and corn also contributed to the increase. The price index for agricultural exports rose 23.5 percent over 2007 after a 13.5 percent advance the previous year. The 2007 increase was the largest calendar-year advance since the index was first published in March 1985.
Nonagricultural prices also increased in December, rising 0.3 percent following a 0.9 percent advance in November. The index rose 4.5 percent over 2007 after a 3.7 percent increase over 2006. A 0.3 percent increase in the price index for nonagricultural industrial supplies and materials was the main contributor to the December advance. Higher prices for chemicals and gold more than offset lower fuel prices. Nonagricultural industrial supplies and materials prices rose 10.5 percent over the past 12 months.
Prices for each of the major finished goods areas also increased in December. Capital goods prices and prices for automotive vehicles each advanced 0.2 percent for the month. For the December 2006-2007 period, capital goods prices rose 1.7 percent while the price index for automotive vehicles increased 1.1 percent. Consumer goods prices ticked up 0.1 percent for the month and 2.9 percent for the year ended in December.
Imports by Locality of Origin
The price indexes of imports from China and from Japan increased in December, advancing 0.1 percent and 0.3 percent, respectively. After declining 1.2 percent in 2006, the price index of imports from China rose 2.4 percent in 2007. Similarly, the price index of imports from Japan edged up 0.1 percent over 2007 after falling 1.2 percent over 2006. The annual increase in prices from China is the largest 12-month rise since the index was first published in December 2003. Import prices from Japan posted a calendar-year increase for the first time since 2004.
Import prices from Canada and the European Union also increased in December, each rising 0.6 percent for the month after advancing 5.9 percent and 0.6 percent, respectively in November. The recent increases continued upward trends over the past year, as prices of imports from Canada rose 12.8 percent for the December 2006-2007 period, while import prices from the European Union increased 3.7 percent. Each was impacted over the year both by higher fuel prices as well as a drop in the value of the dollar.
Prices of imports from Mexico rose 0.7 percent in December and 15.9 percent in 2007. Rising petroleum prices were the largest factor for the increase in import prices from Mexico over the past year.
Import and Export Services
Import air passenger fares rose 5.5 percent in December after declining in each of the three previous months. In December the increase was led by a 16.0 percent jump in Asian fares. Overall, in 2007, import air passenger fares increased 8.0 percent. Export air passenger fares also reversed a recent downturn in December, rising 2.6 percent. The index rose 13.4 percent over the past year.
Prices for import air freight increased 2.7 percent in December following a 2.3 percent advance the previous month. Higher air freight prices from both Europe and Asia, up 3.9 percent and 2.4 percent, respectively, contributed to the increase. Overall import air freight prices rose 8.4 percent for the year ended in December. The price index for export air freight rose 1.2 percent in December and 5.1 percent over the past 12 months.
The price index for export travel and tourism, which is lagged one month, decreased 1.5 percent in November after a 1.1 percent advance in October.
