Import prices fell 0.2 percent in February after declining 1.2 percent in January. The index decreased every month since July 2008 and fell 12.8 percent for the year ended in February, the largest 12-month decline since the index was first published in 1982. The February decrease was led by a 0.6 percent drop in nonpetroleum prices which fell for the seventh consecutive month. Nonpetroleum import prices declined 1.9 percent over the past year. In contrast, petroleum prices advanced 3.9 percent in February after falling 68.9 percent from July through January. The price index for import petroleum fell 52.4 percent for the February 2008-2009 period.
The continued decline in nonpetroleum prices was led by a 2.0 percent drop in nonpetroleum industrial supplies and materials prices. That decrease was driven by a sharp fall in natural gas prices, although lower prices for chemicals and some metals also contributed to the decline. The price index for nonpetroleum industrial supplies and materials fell 4.5 percent in January and has not recorded an increase since July 2008. Lower prices for foods, feeds, and beverages and capital goods also contributed to the drop in nonpetroleum prices in February, decreasing 3.2 percent and 0.4 percent, respectively.
In contrast, prices for automotive vehicles rose for the second consecutive month, increasing 0.2 percent in February following a 0.3 percent advance in January.
The price index for consumer goods was unchanged in February as price declines for jewelry and diamonds were offset by price increases for nonmanufactured consumer goods. Consumer goods prices also recorded no change in January.
Export Goods
Export prices edged down 0.1 percent in February as a 1.7 percent drop in agricultural prices more than offset a 0.1 percent increase in nonagricultural prices. The drop in export prices followed a 0.5 percent increase in January; however, the index declined in each of the previous five months and decreased 4.5 percent for the year ended in February. Agricultural prices fell for the fourth time in the past five months in February after rising 6.2 percent in January. The February decrease was led by lower prices for corn, wheat, and soybeans, all of which turned down after rising in January. Agricultural export prices fell 15.2 percent over the past year, the largest annual decrease since the index was first published in 1985.
Nonagricultural prices ticked up 0.1 percent for the second consecutive month in February, the first monthly advances for the index since July 2008. Despite the modest upturn, the index declined 3.3 percent for the February 2008-2009 period. The February increase was driven by a 0.3 percent rise in capital goods prices that was led in turn by higher semiconductor prices. The February increase in capital goods prices followed a 0.5 percent advance the previous month.
In contrast, the price indexes for consumer goods, automotive vehicles, and nonagricultural supplies and materials all declined in February. Consumer goods prices and prices for automotive vehicles each decreased 0.3 percent. The 0.3 percent drop in automotive vehicles prices was the largest one-month drop since the index was first published monthly in December 1988. Nonagricultural industrial supplies and materials prices fell 0.1 percent in February, the seventh consecutive month the index was down.
Imports by Locality of Origin
Prices for imports from China fell 0.5 percent in February after decreasing in each of the previous five months. Despite the recent downward trend, import prices from China rose 1.0 percent for the year ended in February.
Import prices from Canada and from Mexico also continued to decline in February, falling 1.6 percent and 1.3 percent, respectively. Prices for imports from Canada fell for the seventh consecutive month, and decreased 14.4 percent over the past year, the largest annual decline since January 2002. The price index for imports from Mexico fell 8.6 percent for the February 2008-2009 period.
In contrast, prices for imports from Japan rose for the fifth consecutive month in February, advancing 0.2 percent for the month. The index increased 1.9 percent over the past 12 months.
The price index for imports from the European Union was unchanged in February and declined 2.5 percent over the past year.
Import and Export Services
Import air passenger fares decreased 4.6 percent in February following a 5.6 percent drop the previous month. The February decrease was led by lower European fares which fell 5.7 percent after rising 5.3 percent in January. Despite the recent drop, the index for import air passenger fares rose 8.1 percent for the year ended in February. Export air passenger fares also decreased in February, falling 10.7 percent as lower fares from Asia, Europe, and the Latin America/Caribbean region all contributed to the overall decrease. Fares for export air passengers decreased 1.9 percent over the past 12 months.
Import air freight prices fell 1.1 percent in February, partially attributable to a 2.3 percent drop in European air freight prices. The price index for import air freight decreased 4.8 percent over the past year. Prices for export air freight declined 3.3 percent in February and 4.0 percent for the February 2008-2009 period.
