Transmission of material in this release is embargoed until					USDL-11-0510
8:30 a.m. (EDT) Tuesday, April 12, 2011

Technical information: (202) 691-7101 * MXPinfo@bls.gov * www.bls.gov/mxp
        Media contact: (202) 691-5902 * PressOffice@bls.gov



                           U.S. IMPORT AND EXPORT PRICE INDEXES - MARCH 2011

U.S. import prices rose 2.7 percent in March, the U.S. Bureau of Labor Statistics reported today, following a 
1.4 percent advance in February. The March increase was driven by both higher fuel and nonfuel prices. The 
price index for U.S. exports increased 1.5 percent in March after rising 1.4 percent the previous month.


Imports 

All Imports: Import prices continued a six-month upward trend in March, rising 2.7 percent. The increase 
was the largest one-month advance since a similar 2.7 percent rise in June 2009. Prices of imports rose 9.7 
percent for the year ended in March, the largest 12-month rise since April 2010. Rising fuel and nonfuel 
prices each contributed to the increase over the past year.

Fuel Imports: The price index for import fuel jumped 9.0 percent in March, the largest monthly rise since a 
16.0 percent advance in June 2009. Fuel prices increased 28.7 percent for the year ended in March, driven 
by a 36.6 percent advance over the past six months. Higher petroleum prices drove both the March increase 
in fuel prices and the rise over the past 12 months, increasing 10.5 percent in March and 31.3 percent over 
the past year. In contrast, natural gas prices declined 14.0 percent in March and fell 11.6 percent over the 
past 12 months. 

All Imports Excluding Fuel: Nonfuel import prices rose 0.6 percent in March following a 0.5 percent 
advance the month before. Rising prices for nonfuel industrial supplies and materials, and foods, feeds, and 
beverages each contributed to the March increase. Import prices, excluding fuel advanced 4.2 percent for the 
March 2010-11 period, the largest 12-month increase since a 4.8 percent rise for the year ended October 
2008. A 14.2 percent increase in nonfuel industrial supplies and materials prices and an 18.9 percent rise in 
foods, feeds, and beverage prices led the recent 12 month advance in nonfuel prices. 

Table A. Percent changes

Exports 

All Exports: Export prices advanced 1.5 percent in March after rising 1.4 percent in February. The March 
increase matched a similar 1.5 percent advance in November 2010, and those were the largest increases since 
July 2008. Prices for overall exports rose 9.5 percent for the year ended in March, the largest 12-month 
advance since July 2008. Higher prices for both agricultural and nonagricultural exports contributed to both 
the monthly and 12-month increases in overall export prices. 

Agricultural Exports: The price index for agricultural exports rose 2.3 percent in March, led by a 9.2 
percent increase in corn prices and a 10.5 percent advance in cotton prices. Agricultural prices rose 34.0 
percent over the past year, the largest 12-month increase since a 39.7 percent advance in July 2008. Rising 
corn and cotton prices, up 77.7 percent and 153.8 percent, respectively, were the largest contributors to the 
12-month increase in agricultural prices. 

All Exports Excluding Agriculture: Prices for nonagricultural exports advanced 1.3 percent in March, the 
largest increase since a similar 1.3 percent rise in April 2010. Prices for all of the major goods categories 
increased in March. A 3.2 percent increase for nonagricultural industrial supplies materials prices was the 
largest contributor to the overall advance. The price index for nonagricultural exports rose 7.0 percent over 
the past 12 months.
   
 				
                                        SELECTED MARCH HIGHLIGHTS



Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices increased 2.0 
percent in March, led by a 3.8 percent advance in unfinished metals prices. A 6.5 percent advance in iron 
and steel mill products was the largest factor for the higher metals prices in March. A 1.2 percent increase in 
chemicals prices in March also contributed to the overall increase in industrial supplies and materials prices.    

Finished Goods: Finished goods prices were mixed in March. Consumer goods prices declined 0.2 percent, 
led by a 3.2 percent decrease in the price index for medicinal, dental, and pharmaceutical products. Capital 
goods prices edged down 0.1 percent in March, driven by a 0.9 percent decline in the price index for 
computers, peripherals and semiconductors. In contrast, the price index for automotive vehicles rose 0.2 
percent in March.
 
Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages advanced 4.2 percent in March, the 
largest monthly rise since a 4.3 percent increase in July 1994. A 26.8 percent jump in vegetable prices, drove 
the overall March advance in foods, feeds, and beverages prices.   

Imports by Locality of Origin: Import prices from China rose 0.6 percent in March, the largest monthly 
increase since a 0.8 percent advance in July 2008. Prices for imports from China increased 2.6 percent over 
the past 12 months, the largest 12 month advance since a 2.8 percent rise between December 2007 and 
December 2008. The price indexes for imports from Canada, Mexico, the European Union, and Japan also 
rose in March.

Transportation Services: Import air passenger fares declined 0.2 percent in March.  Lower European fares 
offset increases in Latin American, and Asian fares. Despite the monthly decline, the index was still up 7.6 
percent for the year ending in March. Import air freight prices rose 0.2 percent in March, following a 1.8 
percent rise in February.   


Export Prices
 
Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies 
and materials increased 3.2 percent in March after rising 2.6 percent in February. The March advance was 
driven by an 8.9 percent increase in fuel prices and a 2.0 percent rise for nonferrous metals prices.    
 
Finished Goods: Capital goods prices rose 0.1 percent in March, led by a 0.9 percent increase in the price 
index for electric apparatus and parts and a 0.3 percent advance in computers, peripherals and 
semiconductor prices. Consumer goods prices and prices for automotive vehicles also rose in March, 
increasing 0.6 percent and 0.4 percent, respectively.            

Transportation Services: Export air passenger fares rose 8.7 percent in March and 11.2 percent over the 
past year. Rising Asian and Latin American/Caribbean fares led both the March and the 12-month increases 
for the index. Export air freight prices increased 2.9 percent in March following a 2.0 percent advance in 
February. 
		
Import and Export Price Index data for April 2011 are scheduled for release on Tuesday, May 10, 
2011 at 8:30 a.m. (EDT).

                                          TECHNICAL NOTE


Import and Export Merchandise and Services Price Indexes -- All indexes use a modified Laspeyres 
formula and are not seasonally adjusted.  Price indexes are reweighted annually, with a two-year lag in 
the weights.  Published series use a base year of 2000=100 where possible.  More detailed index series 
and additional information may be obtained at http://www.bls.gov/mxp, or by calling (202) 691-7101.

Merchandise Goods Classification Systems -- The merchandise price indexes are published using 
three classification systems.  Items are classified by end use according to the Bureau of Economic 
Analysis Classification System, by industry according to the North American Industry Classification 
System (NAICS), and by product category according to the Harmonized System (HS).  While 
classification by end use and product category are self-explanatory, some notes are in order for 
classifying items by industry.  In the NAICS imports and exports tables, items are classified by output 
industry, not input industry.  As an example, NAICS import index 326 (plastics and rubber products 
manufacturing) include outputs such as manufactured plastic rather than inputs such as petroleum.  The 
NAICS classification structure also matches the classification system used by the PPI (Producer Price 
Index) to produce the NAICS primary products indexes.

Import Price Indexes -- Products have been classified by the Harmonized Tariff Schedule of the United 
States Annotated (TSUSA).  Import prices are based on U.S. dollar prices paid by the U.S. importer.  
The prices are generally either "free on board" (f.o.b.) foreign port or "cost, insurance, and freight" 
(c.i.f.) U.S. port transaction prices, depending on the practices of the individual industry.  The index for 
crude petroleum is calculated from data collected by the U.S. Department of Energy.  

Export Price Indexes -- Products have been classified by the Harmonized Schedule B classification 
system of the U.S. Bureau of the Census.  The prices used are generally either "free alongside ship" 
(f.a.s.) factory or "free on board" (f.o.b.) transaction prices, depending on the practices of the individual 
industry.  Prices used in the grain index, excluding rice, are obtained from the U.S. Department of 
Agriculture.

Services Price Indexes -- Starting in September 2008 the Import Air Passenger Fares Indexes represent 
changes in the average revenue per passenger received by foreign carriers from U.S. residents and are 
calculated from data obtained from an airline consulting service.  These data include tickets sold by 
travel agencies and travel websites.  Tickets sold directly by the airlines are excluded, as are frequent 
flyer tickets generally.  Starting in January 2008 the Export Air Passenger Fares Indexes represent 
changes in the average revenue per passenger received by U.S. carriers from foreign residents and are 
calculated from data collected directly from airlines. These data include frequent flyer tickets and those 
sold by consolidators. Taxes and fees are included in the Import Air Passenger Fares Index and excluded 
from the Export Air Passenger Fares Index. The Air Freight Indexes are calculated from data collected 
directly from airlines. These data exclude mail and passenger baggage. The scope of the service being 
priced is the movement of freight from airport to airport only, and does not include any ground 
transportation or port service. The Air Freight Indexes are presented using two definitions: Balance of 
Payments (which represent transactions between U.S. and foreign residents) and International (which 
represent transactions inbound to and outbound from the U.S.). Fact sheets specifying detailed 
information for each services industry are available at http://www.bls.gov/mxp under "MXP 
Publications."

Import Indexes by Locality of Origin -- Prices used in these indexes are a subset of the data collected 
for the Import Price Indexes.  Beginning with January 2002, the indexes are defined by locality of origin 
using a nomenclature based upon the North American Industry Classification System (NAICS).  
Nonmanufactured goods are defined as NAICS 11 and 21 and manufactured goods are defined as 
NAICS 31-33. 
 
Revision Policy -- To reflect the availability of late reports and corrections by respondents, monthly data 
may be revised in each of the three months after original publication.  After three months, no further data 
revisions take place.  So, for example, data released in the January release will be subject to revision in 
the releases for February, March, and April.

Uses of the Data -- The primary use of the indexes is to deflate trade statistics, notably the foreign trade 
sector of the National Income and Product Accounts constructed by the Department of Commerce.  
Other published indexes are useful for general market analysis.  For trade in international services, 
Balance of Payments indexes are used for deflating National Income and Product Accounts, while 
International indexes are more appropriate for market analysis.  Merchandise and services indexes also 
can be used to study U.S. competitiveness and to compute price elasticities, and the merchandise import 
indexes by country or region of origin are useful in terms of trade analysis.

E-Mail Subscription -- The U.S. Import and Export Price Indexes news release is available through an 
e-mail subscription service at (http://www.bls.gov/bls/list.htm).
 
Additional Information -- More detailed data are available on the Import/Export Price Indexes home 
page at (http://www.bls.gov/mxp).  Flat Files and the FTP server are available for users requiring access 
to either a large volume of time series data or other related documentation. The FTP site can be accessed 
at ftp://ftp.bls.gov.   For technical assistance in using the BLS Internet site, send e-mail to 
(labstat.helpdesk@bls.gov).  For Import/Export Price Index data requests, send e-mail to 
(mxpinfo@bls.gov). 

Information from this release will be made available to sensory impaired individuals upon request.  
Voice phone: 202-691-5200; Federal Relay Service: 1-800-877-8339.