Prices of U.S. imports rose 1.3 percent in May, the third consecutive increase and largest monthly advance since a 1.4 percent advance in July 2008. The May increase was led by an 8.3 percent gain in petroleum prices which followed a 28.6 percent increase from January through April. Despite the recent jump in petroleum prices, the index fell 51.4 percent over the past year. Nonpetroleum prices rose 0.2 percent in May, the first increase for the index since July 2008. Prices for nonpetroleum imports decreased 5.8 percent for the year ended in May and overall import prices fell 17.6 percent for the same period.
The rise in nonpetroleum prices was driven primarily by a 0.6 percent advance in prices for nonpetroleum industrial supplies and materials, the first increase for that index since July 2008. The increase was led by higher prices for nonferrous metals and chemicals, which more than offset lower iron and steel mill product prices. Overall, nonpetroleum industrial supplies and materials prices declined 22.2 percent for the May 2008-2009 period.
Prices for automotive vehicles and for foods, feeds, and beverages also contributed to the overall increase in nonpetroleum prices in May. Automotive vehicle prices advanced 0.3 percent in May, the first monthly increase for the index since January. The increase was driven by a 0.4 percent advance in passenger vehicle prices. Foods, feeds, and beverages prices also rose 0.3 percent in May after a 1.4 percent increase in April.
The price indexes for capital goods and consumer goods were both unchanged in May following increases of 0.1 percent and 0.2 percent, respectively, in April.
Export Goods
Export prices rose 0.6 percent in May, the second consecutive advance and largest since a 0.7 percent increase in January. Despite the rise, export prices decreased 6.5 percent over the past 12 months. Agricultural prices rose 3.6 percent in May after a 3.7 percent advance the previous month. In each month, the increase was led by a jump in soybean prices, which advanced 12.8 percent in May after a 12.9 percent rise in April. Overall agricultural prices remained down 14.7 percent over the past 12 months. Nonagricultural prices increased 0.3 percent in May, but fell 5.6 percent over the past year.
The increase in nonagricultural prices was led by a 0.5 percent rise in the price index for nonagricultural industrial supplies and materials. The advance in nonagricultural industrial supplies and materials prices followed a 0.3 percent increase in April, which was the first monthly rise for the index since July 2008. Higher prices for nonferrous metals, fuel, and chemicals all contributed to the advance. Despite the May rise, prices for nonagricultural industrial supplies and materials fell 18.7 percent over the past 12 months.
Export prices for both capital goods and consumer goods also rose in May, increasing 0.2 percent and 0.4 percent, respectively. The increase in capital goods prices followed a 0.4 percent advance in April and the May rise in consumer goods prices was an upturn from the previous month when the index recorded a 0.9 percent decline.
The price index for automotive vehicles was unchanged in May after edging down 0.1 percent the previous month.
Imports by Locality of Origin
Higher petroleum prices led import prices from Canada and from Mexico to rise in May, increasing 1.5 percent and 2.1 percent, respectively. Despite the May advances, each index declined over the past 12 months - prices of imports from Canada fell 24.5 percent for the May 2008-2009 period and import prices from Mexico decreased 12.5 percent.
Import prices from China edged down 0.1 percent, the ninth consecutive month the index declined. The price index for imports from China decreased 1.9 percent over the past year, the largest 12-month decrease for the index, which was first published in 2003.
Prices of imports from the European Union and from Japan were unchanged in May after each index declined 0.1 percent the previous month. The price index for imports from the European Union fell 7.0 percent over the past year, while import prices from Japan rose 1.4 percent for the same period.
Import and Export Services
Import air passenger fares continued to trend downward in May, falling 2.1 percent for the month and 10.1 percent over the past year. Both the May and 12-month declines were led by declining European and Latin American/Caribbean fares, which fell 6.0 percent and 6.4 percent, respectively, for the month. European fares fell 14.9 percent for the year ended in May while Latin American/Caribbean fares decreased 20.2 percent over the same period. Export air passenger fares also fell in May, declining 2.4 percent for the month and 14.6 percent for the May 2008-2009 period.
Import air freight prices rose 0.9 percent in May, led by a 1.2 percent increase in European air freight prices. Despite the May rise, the index declined 16.1 percent over the past 12 months. Export air freight prices fell 3.0 percent in May and decreased 13.5 percent from May 2008 to May 2009.
