Transmission of material in this release is embargoed until					USDL-14-1077
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                                 U.S. IMPORT AND EXPORT PRICE INDEXES MAY 2014

U.S. import prices ticked up 0.1 percent in May, after a 0.5-percent downturn in April, the U.S. Bureau of 
Labor Statistics reported today. Higher fuel prices drove the increase in May, after declining fuel prices led 
the decrease the previous month. The price index for U.S. exports also rose 0.1 percent in May following a 
1.0-percent decrease in April. 

Imports

All Imports: Prices for U.S. imports resumed an upward trend, increasing 0.1 percent in May, after falling 
0.5 percent the previous month. Prior to April, import prices rose 1.9 percent over the first quarter of 2014. 
Import prices advanced 0.4 percent over the past 12 months, driven by higher fuel prices which more than 
offset a decline in nonfuel prices.   

Fuel Imports: Fuel prices rose 0.5 percent in May following a 2.7-percent drop the previous month. The 
May increase was led by a 1.1-percent rise in petroleum prices which more than offset a 13.8-percent drop 
in natural gas prices. The May drop in the price index for natural gas followed a 26.8-percent decline in 
April. Import fuel prices advanced 3.0 percent over the past year, and both higher petroleum and natural gas 
prices contributed to the overall increase. Petroleum prices rose 3.0 percent for the year ended in May, and 
natural gas prices, despite the recent drops, advanced 7.9 percent over the same period.        

All Imports Excluding Fuel: Nonfuel import prices were unchanged in May, after ticking up 0.1 percent 
the previous month. In May, lower foods, feeds, and beverages prices and nonfuel industrial supplies and 
materials prices offset price increases for capital goods and consumer goods. The price index for nonfuel 
imports declined 0.2 percent over the past 12 months. A 2.2-percent drop in nonfuel industrial supplies and 
materials prices, a 0.7-percent decline in automotive vehicles prices, and a 0.3-percent decrease in capital 
goods prices more than offset higher foods, feeds, and beverages and consumer goods prices over the year.    

Table A. Percent change in import and export price indexes, selected categories

Exports

All Exports: The price index for U.S. exports ticked up 0.1 percent in May, after decreasing 1.0 percent in 
April, and increasing 0.9 percent in March and 0.8 percent in February. In May, rising prices for both 
agricultural exports and nonagricultural exports contributed to the advance. Export prices rose 0.5 percent 
over the past year, the largest 12-month increase since the index advanced 0.8 percent between June 2012 
and June 2013.        

Agricultural Exports: Agricultural export prices advanced 0.5 percent in May following a 1.5-percent 
increase in April. In May, higher prices for wheat, meat, and fruit, up 4.6 percent, 1.6 percent, and 2.6 
percent, respectively, drove the overall increase in agricultural export prices. The price index for agricultural 
exports also rose for the year ended in May, increasing 1.6 percent. Rising prices for meat and fruit more 
than offset a 19.6-percent drop in corn prices.                          

All Exports Excluding Agriculture: Prices for nonagricultural exports rose 0.1 percent in May following a 
1.4 percent decline in April. In May, nonagricultural industrial supplies and materials prices edged down 0.1 
percent, while capital goods prices ticked up 0.1 percent. The price indexes for both automotive vehicles 
and consumer goods recorded no change. Nonagricultural prices advanced 0.5 percent over the past year led 
by higher prices for capital goods, nonagricultural industrial supplies and materials, and automotive 
vehicles.  

					    SELECTED MAY HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China increased 0.3 percent in May, the largest monthly 
advance since a 0.3-percent rise in January 2012. The May increase was driven by a 0.7-percent increase in 
the index for computer and electronic product manufacturing. Prices for imports from China also rose over 
the year, increasing 0.5 percent, the first 12-month advance since the index rose 0.3 percent between 
September 2011 and September 2012. The price index for imports from the European Union increased 0.3 
percent in May, after rising 0.6 percent the previous month. In contrast, import prices from Canada, Mexico, 
and Japan all declined in May. Prices for imports from Canada fell 0.8 percent, led by lower natural gas 
prices. Import prices from Mexico declined 0.3 percent in May, while the price index for imports from 
Japan edged down 0.1 percent for the same period.    

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials decreased 
0.1 percent in May, after recording no change in April. The May decline was led by a 2.6-percent drop in 
gold prices and a 0.4-percent decrease in the price index for import chemicals.    

Finished Goods: Each of the major finished goods categories either recorded increases or no change in 
May. Capital goods prices advanced 0.2 percent in May following a 0.1-percent drop in April. The May rise 
was led by a 2.7-percent increase in computer prices. Consumer goods prices ticked up 0.1 percent in May 
and prices for automotive vehicles were unchanged, after each rose 0.2 percent the previous month.

Foods, Feeds, and Beverages: The price index for import foods, feeds, and beverages fell 0.8 percent for 
the second consecutive month following a 3.5-percent increase in March. The May decline was driven by a 
9.3-percent drop in fruit prices. 

Transportation Services: The index for import air passenger fares rose 2.1 percent in May, led by an 8.3-
percent increase in Asian fares. The May advance in import air passenger fares was the largest monthly 
increase since a 7.1-percent rise in December 2013. Import air passenger fares rose 5.0 percent for the year 
ended in May. In contrast, prices for import air freight fell 0.3 percent in May and advanced 1.7 percent 
over the past year.     

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for export nonagricultural industrial supplies 
and materials declined 0.1 percent in May, after falling 3.9 percent in April. In May, lower metal and 
chemical prices were the main contributors to the decrease.  

Finished Goods: Export finished goods prices were mostly unchanged in May. Capital goods prices ticked 
up 0.1 percent for the second consecutive month in May. The price indexes for consumer goods and 
automotive vehicles each recorded no change in May following 0.3-percent and 0.4-percent advances, 
respectively, the previous month.  

Transportation Services: Export air passenger fares increased 2.6 percent in May. The rise was driven by 
an 8.3-percent increase in Asian fares. The price index for export air freight rose 6.0 percent in May and 8.7 
percent over the past 12 months. 

Import and Export Price Index data for June 2014 are scheduled for release on Tuesday, July 15, 
2014 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). 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.