Import prices increased for the first time since July, advancing 0.5 percent in March after edging down 0.1 percent in February. The March advance was led by a 10.5 percent rise in petroleum prices. The price index for petroleum increased for the second consecutive month after falling 69.2 percent from July through January. In contrast, nonpetroleum prices decreased for the eighth consecutive month, falling 0.7 percent in March. For the year ended in March, petroleum prices fell 52.0 percent and prices for nonpetroleum imports declined 3.7 percent.
The continued decline in nonpetroleum prices was led by a 2.3 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 some metals also contributed to the decline. The price index for nonpetroleum industrial supplies and materials has not recorded an increase since July 2008.
Lower prices for finished goods also contributed to the drop in nonpetroleum prices in March. Prices for consumer goods fell 0.5 percent following a 0.1 percent advance in February. The price index for capital goods declined 0.3 percent in March, led by falling prices for industrial and service machinery. Import automotive vehicle prices edged down 0.2 percent in March after increasing 0.2 percent in each of the previous two months.
Prices for foods, feeds, and beverages decreased 1.0 percent this month primarily because of lower fruit prices. The March drop followed a 3.2 percent decline in February.
Export Goods
Export prices decreased 0.6 percent in March because of lower prices for both agricultural and nonagricultural exports. The index decreased 9.8 percent over the past eight months and 6.7 percent for the year ended in March. Agricultural prices fell 3.5 percent in March, led by declines for soybeans, corn, and wheat. Agricultural export prices decreased 21.8 percent over the past year, the largest annual decrease since the index was first published in March 1985. Nonagricultural prices edged down 0.3 percent in March and fell 5.0 percent over the past 12 months.
The drop in nonagricultural prices was led by a 0.9 percent decrease in the index for nonagricultural industrial supplies and materials. Lower prices for fuels and chemicals contributed to the decline. Nonagricultural industrial supplies and materials decreased 23.2 percent over the past eight months and 17.3 percent for the March 2008-2009 period, the largest annual decrease since the index was first published in September 1989.
Prices for the major finished goods categories were mixed in March. Consumer goods prices contributed to the decline in overall export prices, falling 0.5 percent. Despite the recent decreases, the index increased 0.5 percent for the year ended in March. In contrast, the price index for automotive vehicles increased in March, rising 0.2 percent. Automotive vehicle prices advanced 1.1 percent over the past year. The price index for capital goods was unchanged this month as lower prices for computers offset higher prices for transportation equipment. Prices for capital goods increased 1.0 percent for the March 2008-2009 period.
Imports by Locality of Origin
Prices for imports from China fell for the seventh consecutive month, decreasing 0.6 percent in March. Import prices from China edged down 0.2 percent for the year ended in March.
Import prices from Canada and from Mexico also continued to decline in March, falling 0.7 percent and 0.1 percent, respectively. Prices for imports from Canada fell for the eighth consecutive month, and decreased 18.4 percent over the past year, the largest annual decline since the index was first published in December 1990. The price index for imports from Mexico decreased 11.7 percent for the March 2008-2009 period, the largest annual decline since the index was first published in December 2003.
The price index for imports from Japan also fell, decreasing 0.1 percent in March after increasing in each of the previous five months. Despite the downturn this month, the index rose 1.8 percent over the past year.
In contrast, prices for imports from the European Union rose in March, advancing 0.1 percent for the month. The index, however, decreased 4.0 percent over the past 12 months.
Import and Export Services
Import air passenger fares decreased 4.7 percent in March following a 4.6 percent drop the previous month. The March decrease was again led by lower European fares, which fell 7.8 percent after decreasing 5.7 percent in February. Despite the recent downward pattern, the index for import air passenger fares rose 2.7 percent for the year ended in March. Export air passenger fares also decreased in March, falling 5.1 percent as lower fares from Europe, the Latin America/Caribbean region, and Asia all contributed to the overall decrease. Fares for export air passengers decreased 10.5 percent over the past 12 months, the largest annual decline since the index was first published in September 1986.
Import air freight prices fell 2.2 percent in March, as both European and Asian air freight prices declined. The price index for import air freight decreased 8.0 percent over the past year. Prices for export air freight declined 2.8 percent in March and 7.0 percent for the March 2008-2009 period.
