Import prices rose 1.0 percent in June, the fifth consecutive increase for the index. Petroleum prices were also up for the fifth month in a row, increasing 4.7 percent in June after a 3.7 percent advance the previous month. After declining at the end of 2006, the price index for import petroleum rose 28.1 percent from January through June. However, the index was only up 2.1 percent over the past year compared to a 33.7 percent increase over the previous 12 months. Nonpetroleum prices also advanced in June, rising 0.2 percent after advancing 0.5 percent in May. Prices for nonpetroleum imports increased 2.6 percent for the year ended in June, while overall import prices rose 2.3 percent for the same period.
The June increase in nonpetroleum prices was led by a 0.5 percent rise in the price index for nonpetroleum industrial supplies and materials, which had risen 4.3 percent over the three months prior to June. Metal prices, which drove the increases in March, April, and May, continued to rise, but a turnaround in building materials prices also contributed to the June increase.
Advances in the price indexes for capital goods, automotive vehicles, and foods, feeds, and beverages also factored into the overall increase in nonpetroleum import prices. Capital goods prices rose 0.2 percent, the first increase for the index since a 0.1 percent uptick in December 2006. Prices for automotive vehicles advanced 0.1 percent for the third consecutive month. Foods, feeds, and beverages prices edged up 0.2 percent, following increases of 0.9 percent and 1.4 percent, respectively, in May and April.
The price index for consumer goods was unchanged in June, the fifth consecutive month the index has recorded little change.
Export Goods
Export prices increased 0.3 percent in June following a 0.2 percent rise in May and a 0.4 percent advance in April. The June rise was mostly led by a 2.9 percent increase in agricultural prices, which resumed an upward trend after declining 1.4 percent in April and recording little movement in May. A sharp rise in soybean prices led the June advance, although higher prices for corn, meat, and agricultural industrial supplies and materials contributed as well. Prices for agricultural exports rose 18.5 percent over the past year. Nonagricultural prices also increased in June by 0.1 percent. For the June 2006-2007 period, nonagricultural prices rose 2.9 percent while overall export prices increased 4.1 percent.
The June advance in nonagricultural prices was driven mostly by a 0.3 percent rise in the price index for nonagricultural industrial supplies and materials. Higher chemicals and fuel prices were the largest contributors to the increase.
Prices for each of the major finished goods categories exhibited little movement in June, with the price index for automotive vehicles ticking up 0.1 percent, while prices for capital goods and consumer goods were each unchanged. Consumer goods prices had increased 0.3 percent and 0.6 percent, respectively, in May and April.
Imports by Locality of Origin
Import prices from China increased 0.3 percent for the second consecutive month and were up 0.6 percent over the past year. The June increase was the third monthly advance in the past four months, a turnaround from the declining trend dating back to when the index was first published in December 2003.
Prices for imports from Mexico, Canada, and the European Union all increased in June, led in each case by higher petroleum prices. Import prices from Mexico rose 1.9 percent for the month and 5.8 percent for the year ended in June. The price index for imports from Canada increased 1.3 percent in June and 4.1 percent over the past 12 months. June prices for imports from the European Union advanced 0.4 percent. The index increased 2.1 percent for the June 2006-2007 period.
Import prices from Japan also rose in June, edging up 0.1 percent. Despite the increase, the index declined 0.7 percent over the past year.
Import and Export Services
Export travel and tourism prices, which are lagged one month, were unchanged in May after increasing 0.2 percent, 2.2 percent, and 2.4 percent over the previous three months.
Import air passenger fares jumped 13.4 percent in June, driven by advances of 17.9 percent and 16.7 percent, respectively, in European and Asian fares. In contrast, export air passenger fares declined 1.5 percent in June after rising 3.9 percent in May. Despite the June decrease, the index for export air passenger fares rose 5.7 percent over the past year.
Prices for both import and export air freight fell in June, declining 0.2 percent and 0.4 percent, respectively. For the year ended in June, import air freight prices decreased 2.1 percent while export air freight prices advanced 0.9 percent.
