Import Goods
The 2.8 percent increase in import prices over the past two months drove the index to the highest level recorded since petroleum prices peaked in August 2006. This was largely attributable to the price index for petroleum which rose a further 6.5 percent in April after an 8.1 percent gain in March and a 1.7 percent advance in February. Despite the recent increases, petroleum prices were down 1.8 percent over the past year. Nonpetroleum prices also rose in April, advancing 0.2 percent following a 0.3 percent increase in March. The nonpetroleum price index was up 2.9 percent over the past 12 months. Overall import prices rose 1.9 percent for the year ended in April.
The increase last month in nonpetroleum import prices was led by a 0.9 percent advance in the price index for nonpetroleum industrial supplies and materials, which followed a 1.4 percent increase in March. Higher metals prices more than offset falling prices for natural gas and chemicals. Also contributing to the rise in nonpetroleum prices was a 1.4 percent increase in foods, feeds, and beverages prices and a modest 0.1 percent advance in consumer goods prices. The increase in foods, feeds, and beverages prices was largely attributable to a 10.1 percent rise in vegetable prices.
In contrast, capital goods prices decreased for the third consecutive month, falling 0.4 percent in April. The decline was led by a 1.8 percent drop in computer prices, the largest monthly decrease for that index since a 2.2 percent drop in July 1999.
The price index for automotive vehicles was unchanged in April after recording modest 0.1 percent advances in March and February.
Export Goods
Export prices rose 0.3 percent in April following 0.6 percent and 0.8 percent increases in March and February, respectively. A 0.4 percent advance in nonagricultural prices more than offset a downturn in agricultural prices. Prices for nonagricultural exports rose for the sixth consecutive month and advanced 3.9 percent for the year ended in April. Overall, export prices increased 4.9 percent for the same eriod.
The increase in nonagricultural prices was led by the continued rise in the price index for nonagricultural industrial supplies and materials, up 1.4 percent in April after advancing 1.8 percent and 2.1 percent in the two previous months. Higher prices for fuels, chemicals, and iron and steel products all contributed to the increase.
Prices for the major finished goods indexes were mixed in April. The price indexes for consumer goods and automotive vehicles increased, rising 0.5 percent and 0.1 percent, respectively. In contrast, capital goods prices declined for the second consecutive month, falling 0.1 percent in April.
Agricultural prices decreased 1.3 percent in April, the largest decline since a 1.4 percent drop in September 2005. Corn prices, which had trended upward for most of 2007, led the downturn in agricultural prices, falling 14.3 percent in April. Despite the decline, corn prices were up 39.5 percent over the past year.
Imports by Locality of Origin
Higher petroleum prices in April contributed to increasing prices for imports from Canada and Mexico, which rose 1.4 percent and 2.1 percent, respectively. The increase in prices from Mexico was the largest monthly advance since a 2.3 percent rise in July 2006. Import prices from Canada rose 3.2 percent for the year ended in April, while prices for imports from Mexico increased 3.7 percent.
In contrast, import prices from the European Union fell 0.1 percent in April. Higher crude petroleum prices also impacted the index, but that was more than offset by a 0.2 percent decline in the prices for manufactured articles. Prices from the European Union increased 3.4 percent over the past year.
The price index for imports from China decreased 0.1 percent in April following a 0.2 percent advance the previous month. Import prices from China declined 0.4 percent for the April 2006-2007 period. Prices for imports from Japan recorded no change in April and fell 0.5 percent over the past 12 months.
Import and Export Services
Import air passenger fares rose 3.5 percent in April, the largest increase for the index since an 11.4 percent advance in June 2006. Export air passenger fares also increased in April, rising 2.6 percent. In both cases, the increases were led by seasonal factors. The index for import fares rose 4.8 percent for the year ended in April, while export fares increased 9.3 percent for the same period.
Prices for import air freight rose 0.7 percent in April, driven by a 0.9 percent advance in Asian air freight prices. Import air freight prices increased 1.4 percent over the past year. Export air freight prices advanced 0.4 percent in April and 3.4 percent over the past 12 months.
Export travel and tourism prices, which are lagged one month, rose 2.2 percent in March after a similar 2.4 percent increase in February.
