Import prices fell 6.7 percent in November after decreases of 5.4 percent, 3.5 percent, and 3.1 percent in October, September, and August, respectively. The November decline was the largest one-month drop since the index was first published monthly in December 1988 and the 17.4 percent decrease over the past four months was the largest four-month decline since the index was first published in September 1982. Import prices decreased 4.4 percent for the year ended in November; in contrast, prices for imports increased 21.4 percent from July 2007 to July 2008. The four-month decline in import prices was largely driven by falling petroleum prices, which decreased 25.8 percent in November after declining 19.8 percent, 11.2 percent, and 9.8 percent, respectively, in October, September, and August.
The November drop in petroleum prices was the largest monthly decline since the index was first published monthly in December 1988 and the 52.3 percent decrease over the past four months was the largest four-month decline since the index was first published in June 1982. For the November 2007-2008 period, petroleum prices fell 29.0 percent.
The price index for nonpetroleum imports fell 1.8 percent in November, the largest decrease
since the index was first published monthly in December 1988. Despite the recent declines, the index increased 2.4 percent over the past year. The November decrease was led by a 5.2 percent decline in prices for nonpetroleum industrial supplies and materials, the largest one-month drop for that index since a 5.3 percent decrease in April 2003. Lower prices for metals drove the November decline in nonpetroleum industrial supplies and materials prices. Falling prices for foods, feeds, and beverages, down 5.0 percent, also contributed to the decrease in nonpetroleum prices.
Finished goods prices decreased as well. The price indexes for capital goods, automotive vehicles, and consumer goods fell 0.4 percent, 0.6 percent, and 0.3 percent, respectively, in November, paralleling the recent appreciation of the dollar.
Export Goods
Export prices fell 3.2 percent in November, the largest one-month decline since the index was first published monthly in December 1988. The decrease followed drops of 2.0 percent, 0.8 percent, and 1.6 percent in October, September, and August, respectively. The 7.4 percent decrease over the past four months was the largest four-month decline since the index was first published in September 1983. As a result of the recent downward trend, export prices fell 0.2 percent over the past 12 months. The price index for agricultural exports fell 7.0 percent in November and 23.0 percent over the past four months, the largest four-month drop since the index was first published in March 1985. The November drop was led by falling prices for meat, corn, soybeans, and wheat. Agricultural prices, which had risen 39.7 percent from July 2007 to July 2008, fell 2.8 percent for the year ended in November.
Nonagricultural prices fell for the fourth consecutive month, declining 2.9 percent in November following decreases of 1.3 percent, 0.9 percent, and 0.7 percent, respectively, in October, September, and August. The November decline was the largest one-month drop for the index since first being published monthly in December 1988 and was led by an 8.2 percent drop in prices for nonagricultural industrial supplies and materials. That decline was driven by lower prices for fuels, chemicals, and metals. The price index for nonagricultural exports was unchanged over the past year.
The major finished goods price indexes also decreased in November. Prices for consumer goods, capital goods, and automotive vehicles fell 0.9 percent, 0.2 percent, and 0.1 percent, respectively.
Imports by Locality of Origin
The sharp decline in fuel prices continued to impact import prices from Canada, Mexico, Latin America, the Asia Near East, and the European Union. Prices for imports from Canada fell 8.3 percent for the month and 1.8 percent over the past 12 months. The price indexes for imports from Mexico and Latin America declined 5.0 percent and 8.3 percent, respectively, in November, and 2.6 percent and 7.1 percent, respectively, over the past year. Prices for imports from Asia Near East decreased 19.7 percent this month and 23.7 percent for the year ended in November. The price index for imports from the European Union fell 3.1 percent in November and, despite recent declines, increased 2.1 percent over the past 12 months.
The price index for imports from China declined for the second consecutive month, falling 0.6 percent in November, the largest decline since the index was first published in December 2003. Despite the recent downturn, the index rose 3.5 percent for the year ended in November.
In contrast, import prices from Japan rose 0.3 percent in November following a 0.4 percent increase the previous month. The index advanced 1.9 percent for the November 2007-2008 period.
Import and Export Services
Import air passenger fares fell for the third time in the past four months, decreasing 5.0 percent in November. The November decline was led by a 7.0 percent drop in European fares. Export air passenger fares declined for the third consecutive month, falling 4.5 percent in November after decreasing 3.8 percent and 11.0 percent in October and September, respectively. The 18.2 percent decline over the past three months was the largest three-month drop since the index was first published in September 1986. For the year ended in November, however, import air passenger fares rose 22.9 percent while export air passenger fares advanced 4.0 percent.
Prices for import air freight decreased for the fourth consecutive month, falling 4.6 percent in November. Despite the recent declines, the index increased 5.4 percent over the past 12 months. A 12.3 percent drop in European air freight prices in November led the overall decline. The price index for export air freight fell 1.6 percent in November and 4.7 percent over the past three months; however, the index advanced 12.9 percent over the past year.
