The 2.7 percent advance in import prices in November followed increases of 1.4 percent and 0.6 percent the two previous months. Over the past 12 months, the price index for petroleum imports was up 53.0 percent, while overall import prices increased 11.4 percent, the largest annual advance since the index was first published in September 1982. While the rise in petroleum prices was the largest contributor to the November increase, nonpetroleum prices also advanced, rising 0.7 percent. The increase in nonpetroleum prices in November followed a 0.5 percent rise in October. Nonpetroleum prices advanced 3.0 percent over the past year.
A 2.7 percent increase in the price index for nonpetroleum industrial supplies and materials was the largest contributor to the overall rise in nonpetroleum prices in November. The advance followed a 1.4 percent increase in October. The increase was largely attributable to a sharp rise in natural gas prices. Excluding prices for petroleum and natural gas, prices for industrial supplies and materials rose 1.2 percent. Prices for chemicals, gold, and other precious metals contributed to the advance.
Capital goods prices rose 0.2 percent in November, continuing an upward trend over the past seven months. The increase was led by higher prices for industrial and service machinery as well as computers. Prices for automotive vehicles and for consumer goods also increased in November. Automotive vehicle prices rose 0.3 percent for the second consecutive month, while prices for consumer goods ticked up 0.2 percent after rising 0.1 percent in each of the previous two months.
In contrast, the price index for foods, feeds, and beverages fell 0.2 percent in November. Lower prices for meat and fruit both contributed to the decrease.
Export Goods
The 0.9 percent increase in export prices was the largest one-month gain in the index since a 1.0 percent increase in April 1995. Higher prices for both agricultural and nonagricultural exports contributed to the advance. Agricultural prices increased 1.4 percent in November after a 3.8 percent rise the previous month and advanced 23.0 percent over the past year. In November, higher prices for corn and soybeans more than offset lower prices for wheat. Nonagricultural prices increased 0.8 percent in November after recording a 0.5 percent rise the previous month. For the year ended in November, nonagricultural prices rose 4.6 percent while overall export prices advanced 6.1 percent, the largest annual advance since July 1995.
The November increase in nonagricultural prices was led by a 2.3 percent rise in the price index for nonagricultural industrial supplies and materials. The advance followed a 1.1 percent increase in October. Rising prices for fuel, metals, and chemicals drove the index upward.
Each of the major finished goods indexes also recorded advances in November. The price indexes for consumer goods and capital goods rose 0.3 percent and 0.1 percent, respectively. Automotive vehicle prices ticked up 0.1 percent in November, following a 0.2 percent advance in October.
Imports by Locality of Origin
Prices for imports from China rose for the seventh consecutive month in November, increasing 0.2 percent. The index had also advanced 0.2 percent in October and September. Over the past 12 months, the index rose 2.3 percent after declining 1.3 percent for the November 2005-2006 period.
Import prices from Canada and from the European Union advanced 4.7 percent and 0.7 percent, respectively, in November. Higher fuel prices and a decline in the value of the dollar contributed to the increases. For the year ended in November, prices for imports from Canada rose 12.9 percent while import prices from the European Union were up 3.3 percent.
The price index for imports from Mexico also increased, rising 1.9 percent in November and 14.2 percent over the past year.
In contrast, the price index for imports from Japan edged down 0.1 percent in November. Prices for imports from Japan fell 0.2 percent for the year ended in November.
Import and Export Services
The price index for export travel and tourism, which is lagged one month, increased 1.1 percent in October after a 2.1 percent advance in September.
Import air passenger fares decreased for the third consecutive month in November, falling 3.0 percent following a 5.6 percent drop in October. The decline in November was driven by lower seasonal European fares, which decreased 7.7 percent. Despite the recent drops, the index rose 5.8 percent over the past 12 months. Export air passenger fares fell 1.2 percent in November, but advanced 11.5 percent over the past year.
The price indexes for import air freight and export air freight each rose in November, advancing 2.1 percent and 0.3 percent, respectively. For the year ended in November, import air freight prices increased 6.4 percent and prices for export air freight rose 3.9 percent.
