Import prices fell 1.1 percent in January and 23.4 percent over the past six months. For the sixth consecutive month, petroleum prices and nonpetroleum prices decreased, falling 2.4 percent and 0.8 percent, respectively, in January. However, prices for both overall imports and petroleum decreased at a smaller rate in January than in each of the previous five months since prices last rose in July. Petroleum prices fell 69.1 percent over the past six months and 55.0 percent over the past year, the largest 12-month decline since the index was first published in June 1982. Overall, import prices fell 12.5 percent for the year ended in January, the largest 12-month decline since the index was first published in September 1982. Nonpetroleum prices decreased 5.7 percent over the past six months and 0.6 percent over the past year.
The 0.8 percent January decrease in nonpetroleum prices was led by a 4.8 percent drop in the price index for nonpetroleum industrial supplies and materials. Falling prices for chemicals and natural gas were the largest contributors to the decline. Nonpetroleum industrial supplies and materials prices decreased 7.6 percent over the past year, led primarily by declining unfinished metals prices.
In contrast, prices for automotive vehicles increased in January, rising 0.2 percent after
decreasing the previous two months. For the year ended in January, the index increased 0.7 percent.
The price indexes for consumer goods, capital goods, and foods, feeds, and beverages were unchanged in January. Over the past year, consumer goods prices increased 1.5 percent, capital goods prices advanced 0.9 percent, and prices for foods, feeds, and beverages rose 3.3 percent.
Export Goods
Export prices rose 0.5 percent in January after declining in each of the previous five months. The increase was driven by a 6.2 percent rise in agricultural prices as nonagricultural prices were unchanged. The rise in agricultural prices followed decreases in four of the previous five months. Higher prices for corn, soybeans, and wheat accounted for the increase in January. Despite the January increase, agricultural prices fell 9.7 percent over the past 12 months. Nonagricultural prices recorded no change in January after falling in each of the previous five months. The price index for nonagricultural exports declined 2.9 percent for the year ended in January, the largest 12-month decrease since a 2.9 percent drop for the February 2001-2002 period. Similarly, overall export prices fell 3.6 percent over the past year, the largest 12-month decrease since the index fell 3.8 percent for the year ended in November 1998.
Finished goods prices also contributed to the rise in overall export prices in January. The price indexes for capital goods and automotive vehicles each advanced 0.3 percent in January. Capital goods prices and prices for automotive vehicles increased 0.9 percent and 1.3 percent, respectively, over the past year. Consumer goods prices rose 0.7 percent in January and 2.2 percent for the January 2008-2009 period.
In contrast, prices for nonagricultural industrial supplies and materials continued to move lower in January, falling 1.2 percent. The index decreased in each of the past six months, dropping a cumulative 22.4 percent. Lower prices for chemicals, particularly organic chemicals and plastics, largely drove the January decline.
Imports by Locality of Origin
Prices of imports from China decreased for the fifth consecutive month, falling 0.7 percent in January after a 0.5 percent decline in December. Despite the recent decreases, import prices from China advanced 1.2 percent over the past 12 months.
Import prices from Canada fell for the sixth consecutive month, declining 0.9 percent in January following a 4.8 percent drop the previous month. Falling fuel prices continued to lead the decrease. The index fell 11.3 percent for the year ended in January, the largest 12-month
decline since an identical drop for the February 2001-2002 period. The price index for imports from Mexico also decreased in January, falling 2.3 percent. The index fell 9.5 percent over the past year, the largest 12-month decline since the
index was first published in December 2003.
In contrast, prices of imports from Japan and from the European Union each rose in January, increasing 0.3 percent and 0.1 percent, respectively. The price index for imports from Japan increased 2.2 percent for the year ended in January, the largest 12-month advance since the index rose 2.3 percent for the July 1999-2000 period. Import prices from the European Union fell 1.8 percent over the past year.
Import and Export Services
Import air passenger fares decreased 5.6 percent in January after a 0.2 percent decline in December. The January decrease was driven by an 11.7 percent drop in Asian fares and a 19.7 percent fall in Latin American/Caribbean fares. Despite the recent decreases, the index of import air passenger fares increased 12.2 percent for the January 2008-2009 period. In contrast, export air passenger fares advanced 3.2 percent in January as a 10.5 percent increase in Asian fares and a 7.0 percent rise in Latin American/Caribbean fares more than offset a 3.4 percent fall in European fares. Export air passenger fares rose 4.9 percent over the past 12 months.
The price index for import air freight fell for the sixth consecutive month, declining 1.4 percent in January. The index decreased 2.5 percent over the past 12 months. Similarly, export air freight prices fell for the fifth consecutive month, declining 1.7 percent in January. The recent decreases notwithstanding, export air freight prices advanced 0.8 percent for the year ended in January.
