Transmission of material in this release is embargoed until                                      USDL-12-2205
8:30 a.m. (EST) Friday, November 9, 2012

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 - OCTOBER 2012

The price index for U.S. imports rose 0.5 percent in October, the U.S. Bureau of Labor Statistics reported 
today, following increases for each of the previous two months. Higher fuel and nonfuel prices each 
contributed to the October advance. U.S. export prices were unchanged in October after increasing 0.8 
percent in September. 


Imports

All Imports: Import prices rose for the third consecutive month in October, increasing 0.5 percent after a 1.1 
percent advance in September and a 1.2 percent rise in August. This upturn was largely driven by higher fuel 
prices, although nonfuel prices also increased in October and September. Led by the recent advances, overall 
import prices ticked up 0.4 percent for the year ended in October, which was the first 12-month rise in 
import prices since April.     

Fuel Imports: Fuel prices increased 1.2 percent in October following advances of 4.5 percent in September 
and 6.1 percent in August. Prior to August, fuel prices had trended down overall in 2012. The recent 
increases helped drive the price index for import fuel up 1.0 percent over the past 12 months. Both the 
October increase in fuel prices and the advance over the past year were led by higher petroleum prices, 
which rose 1.3 percent for the month and 1.9 percent for the year ended in October. A 4.9 percent increase 
in natural gas prices also contributed to the October advance in fuel prices. Despite the October rise, natural 
gas prices fell 20.5 percent for the October 2011-12 period.           

All Imports Excluding Fuel: The price index for nonfuel imports advanced 0.3 percent in October 
following a 0.2 percent rise the previous month. Those were the first monthly increases for the index since 
April, and each of the major finished goods categories contributed to the rise in October. Nonfuel import 
prices also rose over the past 12 months, ticking up 0.1 percent. Rising prices for finished goods over the 
year more than offset lower prices for nonfuel industrial supplies and materials and foods, feeds, and 
beverages.   


Table A. Percent changes

Exports

All Exports: Export prices recorded no change in October as rising nonagricultural prices were offset by a 
downturn in prices for agricultural exports. The price index for overall exports had risen in each of the 
previous three months, advancing 2.1 percent overall for the third quarter of 2012. Prices for overall exports 
increased 1.4 percent over the past year, the first 12-month advance for the index since April.     

Agricultural Exports: Agricultural export prices declined 1.9 percent in October, led by a 10.4 percent drop 
in soybeans prices. The October drop in agricultural prices followed increases of 1.2 percent, 4.7 percent, 
and 6.0 percent in the three previous months and the index advanced 11.6 percent for the year ended in 
October. 12-month advances of 37.1 percent for soybeans prices, 26.0 percent for corn prices, and 20.2 
percent for wheat prices all contributed to the year-over-year rise in agricultural prices.           

All Exports Excluding Agriculture: The price index for nonagricultural exports increased a relatively 
modest 0.2 percent in October after a 0.7 percent advance the previous month that was driven by a 4.5 
percent rise in fuel prices. In contrast, fuel prices in October declined 0.8 percent. Prices for nonagricultural 
exports advanced 0.2 percent over the past year.   
		


                                    SELECTED OCTOBER HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China fell 0.3 percent in October, the largest monthly 
drop for the index since a 0.4 percent decline in April. The October decrease followed a 0.2 percent decline 
in September and for the second consecutive month was driven by lower prices for computer and electronic 
products, down 0.4 percent in October after declining 0.6 percent the previous month. Prices for imports 
from China decreased 0.4 percent over the past year, the first 12-month decline for the index since August 
2010. In contrast, import prices from the European Union, Canada, Mexico, and Japan all rose in October. 
Import prices from the European Union increased 0.6 percent in October, paralleling a recent rise in the Euro 
relative to the U.S. dollar. Prices for imports from Canada rose 0.5 percent in October, while import prices 
from Mexico advanced 0.4 percent. The price index for imports from Japan increased 0.3 percent, the largest 
rise since the index advanced a similar 0.3 percent in August 2011.     

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices rose 1.1 
percent in October following a 0.2 percent decline the previous month, led by a 4.4 percent advance in 
unfinished metals prices.  

Finished Goods: Prices for each of the major finished goods indexes advanced in October. Consumer goods 
prices rose 0.2 percent, led by a 0.7 percent increase for medicinal, dental, and pharmaceutical prices. The 
price index for automotive vehicles advanced 0.3 percent driven by a 0.6 percent increase in prices for 
passenger cars. Prices for capital goods also rose in October, ticking up 0.1 percent.  
 
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices advanced 0.2 percent in October after 
rising 1.7 percent in September. Despite the recent increases, prices for foods, feeds, and beverages fell 0.8 
percent over the past 12 months.    

Transportation Services: Import air passenger fares rose 2.0 percent in October following declines in each 
of the previous three months. The October advance was led by a 3.7 percent increase in European fares. 
Overall, import air passenger fares advanced 3.1 percent between October 2011 and October 2012. The price 
index for import air freight increased 1.3 percent in October, while decreasing 2.7 percent over the past year.  

Export Prices
 
Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies 
and materials increased 0.5 percent in October following a 1.8 percent advance the previous month. The 
October increase was led by a 5.4 percent rise in nonferrous metals prices.  
 
Finished Goods: Finished goods prices were flat overall in October. Capital goods prices and prices for 
consumer goods each ticked up 0.1 percent, while the price index for automotive vehicles edged down 0.1 
percent.   

Transportation Services: Export air passenger fares fell 2.2 percent in October after decreasing 12.4 
percent in September. Those declines drove the index down 2.5 percent over the past year. Prices for export 
air freight advanced 1.6 percent in October and 2.7 percent over the past 12 months.  
		
Import and Export Price Index data for November 2012 are scheduled for release on Wednesday, 
December 12, 2012 at 8:30 a.m. (EST).

                                          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.