A downturn in petroleum prices, which fell 2.8 percent in July, was the primary factor for the turnaround in overall import prices. Prices for import petroleum rose 66.6 percent over the previous five months, which led overall imports up 6.0 percent over that period. Despite the jump between February and June, petroleum prices fell 49.9 percent over the past year. Overall import prices posted the largest annual decline since the index was first published in 1982, falling 19.3 percent for the year ended in July. In addition, nonpetroleum import prices declined 0.2 percent in July, resuming a downward trend over the past year after advancing the past two months. Nonpetroleum prices fell 7.3 percent over the past 12 months, the largest annual decrease since the index was first published in 1985.
The July decline in nonpetroleum prices was led by a 0.9 percent decrease in the price index for nonpetroleum industrial supplies and materials which was driven by lower prices for chemicals and natural gas. Nonpetroleum industrial supplies and materials prices declined 26.0 percent over the past 12 months. Consumer goods prices also decreased, falling 0.4 percent in July and 1.2 percent over the past year. Lower prices for apparel, television and video receivers, and jewelry all contributed to the July decline.
In contrast, the price indexes for capital goods and automotive vehicles increased in July, rising 0.2 percent and 0.1 percent, respectively. Capital goods prices fell 1.5 percent for the year ended in July, whereas automotive vehicle prices were unchanged over the past year.
Export Goods
Export prices fell 0.3 percent in July after increasing for three consecutive months. The July decline was driven by a 4.9 percent decrease in agricultural prices, which also fell for the first time in four months. Sharp drops in corn and wheat prices were the largest contributors to the decline. The price index for agricultural exports decreased 22.3 percent over the past 12 months, the largest annual decline since the index was first published in 1985. Nonagricultural prices advanced 0.2 percent in July, but decreased 6.5 percent for the July 2008-2009 period. Overall export prices fell 8.1 percent over the past year, the largest annual decrease since the index was first published in 1983.
Nonagricultural industrial supplies and materials prices increased for the fourth consecutive month, ticking up 0.1 percent in July. Higher prices for plastics were mostly offset by lower fuel prices. Despite the recent increases, the price index for nonagricultural industrial supplies and materials decreased 21.0 percent over the past 12 months.
Capital goods prices and consumer goods prices also rose in July, advancing 0.3 percent and 0.4 percent, respectively. Over the past 12 months, prices for capital goods rose 1.6 percent, while prices for consumer goods rose 0.2 percent.
In contrast, prices for automotive vehicles decreased in July, falling 0.2 percent after decreasing 0.1 percent the previous month. The price index for automotive vehicles edged up 0.1 percent for the July 2008-2009 period.
Imports by Locality of Origin
The price indexes for imports from Mexico and from Canada each decreased in July, led by lower petroleum prices. Import prices from Mexico fell 1.1 percent in July and 16.8 percent over the past year. Similarly, prices for imports from Canada declined 1.0 percent for the month and 26.5 percent for the year ended in July.
Import prices from China fell 0.2 percent in July after ticking up 0.1 percent in June. Overall import prices from China decreased 3.3 percent for the July 2008-2009 period, the largest 12-month drop since the index was first published in December 2003.
In contrast, prices for imports from the European Union and from Japan advanced 0.2 percent and 0.1 percent, respectively, in July. The price index for imports from the European Union fell 7.2 percent for the year ended in July, led in part by lower petroleum prices, while import prices from Japan rose 1.6 percent.
Import and Export Services
Import air passenger fares decreased 3.1 percent in July after increasing 13.0 percent the previous month. The decline was led by a 6.0 percent decrease in European fares. Over the past year, import air passenger fares fell 20.1 percent, the largest 12-month drop since the index was first published in 1988. Export air passenger fares rose in July, advancing 0.7 percent because of higher European and Latin
America/Caribbean fares. Despite the July increase, export air passenger fares fell 24.3 percent, the largest 12-month drop since the index was first published in 1986.
The price index for import air freight advanced 0.3 percent in July after a 2.0 percent increase the previous month. The index fell 16.9 percent for the year ended in July. Export air freight prices rose 1.4 percent in July after decreasing for 10 consecutive months. Overall, export air freight prices declined 16.8 percent over the past year.
