Transmission of material in this release is embargoed until                                   USDL-11-0348
8:30 a.m. (EDT) Tuesday, March 15, 2011

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Media contact:	       (202) 691-5902 * PressOffice@bls.gov


Note: This release was reissued on March 16, 2011, to change incorrect text references to January on pages 3 and 4.


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

U.S. import prices rose 1.4 percent in February, the U.S. Bureau of Labor Statistics reported today,
following a similar 1.3 percent advance in January. The price index for U.S. exports increased 1.2 percent in
February after rising 1.3 percent the previous month. Higher agricultural and nonagricultural export prices
each contributed to the overall advance in February.


Imports


All Imports: Prices for imports rose 1.4 percent in February, continuing a five-month trend of monthly
increases greater than 1.0 percent. Import prices advanced 6.9 percent for the year ended in February, driven
by a 7.0 percent jump for the index over the past five months. The year-over-year rise in February was the
largest 12-month advance since an 8.5 percent increase for the year ended in May 2010. Higher prices for
both fuel and nonfuel import prices contributed to the increase in February and over the past year.

Fuel Imports: Fuel prices increased 4.0 percent in February following a 3.5 percent advance the previous
month. Rising prices for both petroleum and natural gas factored into the February increase, advancing 3.7
percent and 12.1 percent, respectively. Fuel prices rose 18.6 percent over the past 12 months, led by a 20.6
percent jump in petroleum prices. Despite rising 23.4 percent over the past two months, however, natural gas
prices declined 10.9 percent between February 2010 and February 2011.

All Imports Excluding Fuel: Nonfuel import prices advanced 0.3 percent in February after a 0.7 percent
increase in January. Higher prices for nonfuel industrial supplies and materials; foods, feeds, and beverages;
and each of the major finished goods categories all contributed to the rise in nonfuel prices in February. The
price index for nonfuel imports increased 3.6 percent the past year, the largest 12-month advance since a 4.8
percent increase between October 2007 and October 2008. The current 12-month rise was mostly driven by
a 12.9 percent advance for nonfuel industrial supplies and materials prices and a 15.8 percent increase for
foods, feeds, and beverages prices.

Table A. Percent changes

Exports


All Exports: Export prices rose 1.2 percent in February following a 1.3 percent advance the previous month.
The index has risen at least 0.6 percent every month since a 0.2 percent decline in July 2010. The price index
for overall exports increased 8.6 percent over the past year, the largest 12-month advance since a 10.2
percent rise for the year ended in July 2008.

Agricultural Exports: Agricultural exports advanced 4.4 percent in February and 33.5 percent over the past
12 months. The price index for agricultural exports is at the highest level since the index was first published
in March 1985, and the year-over-year increase in February was the largest since a 39.7 percent surge for the
July 2007-08 period. Rising cotton prices, up 15.7 percent in February and 153.5 percent over the past year,
had the largest contribution to both the February and 12-month advances for agricultural prices. Prices for
corn, wheat, and soybeans, which rose 7.9 percent, 11.0 percent, and 3.4 percent, respectively, in February,
also continued an upward trend.

All Exports Excluding Agriculture: Nonagricultural prices increased 0.9 percent in February following a
1.0 percent advance the previous month. Rising prices in February for nonagricultural industrial supplies and
materials prices and consumer goods, up 2.6 percent and 0.5 percent, respectively, more than offset a 0.3
percent drop in capital goods prices. The price index for nonagricultural exports increased 6.2 percent for the
year ended in February.


                                        SELECTED FEBRUARY HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials
rose 1.3 percent in February following a 2.1 percent rise the previous month. Higher prices for metals and
chemicals drove the increases in each month. Unfinished metal prices advanced 1.8 percent in February,
while chemical prices rose 1.2 percent.

Finished Goods: Prices for each of the major finished goods categories advanced in February. Consumer
goods prices increased 0.2 percent in February, led by a 0.9 percent increase in the price index for cotton
apparel and household goods. The price index for capital goods also rose 0.2 percent as higher prices for
both computers, peripherals and semiconductors, and capital goods excluding computers contributed to the
advance. Prices for automotive vehicles ticked up 0.1 percent in February after rising 0.3 percent in January.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices rose 0.8 percent in February following a
2.5 percent increase the previous month. In February, rising prices for meat, food oils, fruit, and coffee, up
7.2 percent, 5.6 percent, 2.9 percent, and 3.9 percent, respectively, more than offset a 6.4 percent drop in
vegetable prices and a 3.9 percent decline in the price index for bakery and confectionery products.

Imports by Locality of Origin: Prices for imports from China continued to rise in February, increasing 0.4
percent for the second consecutive month. Import prices from China have risen 2.0 percent over the past
year, the largest 12-month advance since a 2.8 percent increase for the December 2007-08 period. Prices for
imports from Japan advanced 0.5 percent for the second consecutive month and rose 3.1 percent for the year
ended in February, the largest 12-month increase for the index since a 3.3 percent advance in November
1995.

Transportation Services: Import air passenger fares fell 2.4 percent in February after a similar 2.6 percent
drop the previous month. Lower Asian and European fares contributed to the February decline. Import air
freight prices advanced 1.7 percent in February, following a 1.6 percent decrease in January.

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and
materials advanced 2.6 percent in February after a similar 2.5 percent increase the previous month. The rise
was driven by a 3.5 percent advance in fuel prices, a 2.4 percent increase in chemicals prices, and a 15.4
percent jump in steelmaking and ferroalloying material prices.

Finished Goods: Finished goods prices were mixed in February. Capital goods prices fell 0.3 percent, driven
by a 1.5 percent drop in the price index for computers, peripherals, and semiconductors. In contrast,
consumer goods prices rose 0.5 percent in February, while prices for automotive vehicles were unchanged.

Transportation Services: Export air passenger fares fell 6.0 percent in February, the largest monthly decline
since an 8.6 percent drop in September. The February decrease was driven by a 16.8 percent drop in Asian
fares. The price index for export air freight rose 1.5 percent in February and 3.8 percent the previous month.

Import and Export Price Index data for March 2011 are scheduled for release on Tuesday, April 12,
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.