Transmission of material in this release is embargoed until                               USDL-12-0664
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                             U.S. IMPORT AND EXPORT PRICE INDEXES - MARCH 2012

U.S. import prices advanced 1.3 percent in March, the U.S. Bureau of Labor Statistics reported today, after 
edging down 0.1 percent the previous month. Higher fuel and nonfuel prices contributed to the advance. 
Prices for U.S. exports rose 0.8 percent in March, following increases of 0.4 percent in February and 0.2 
percent in January. 


Imports
 	
All Imports: Import prices advanced 1.3 percent in March, the first increase for the index since rising 0.7 
percent in November and the largest monthly rise since a 2.6 percent advance in April 2011. Import prices 
increased 3.4 percent over the past year, the smallest 12-month advance for the index since a similar 3.4 
percent rise between November 2008 and November 2009. 

Fuel Imports: A 3.8 percent rise in import fuel prices led the March increase in overall import prices.  The 
increase in fuel prices was the first one-month advance since a 3.4 percent rise in November. In March, a 4.3 
percent increase in petroleum prices, the largest component of imported fuels more than offset a 14.2 percent 
drop in natural gas prices. Prices for import fuel rose 7.4 percent for the year ended in March, driven by a 9.6 
percent advance in petroleum prices. In contrast, natural gas prices fell 37.8 percent over the past 12 months.     

All Imports Excluding Fuel: The price index for nonfuel imports increased 0.5 percent in March, the largest 
one-month advance since a 0.8 percent rise in April 2011. A 1.7 percent increase in nonfuel industrial 
supplies and materials prices was the largest contributor to the overall advance, while prices for foods, feeds, 
and beverages; capital goods; and automotive vehicles rose as well. Nonfuel import prices increased 2.0 
percent for the March 2011-12 period, the smallest year-over-year advance since a 1.9 percent rise for the 
year ended in February 2010.

Table A. Percent changes

Exports

All Exports: U.S. export prices increased 0.8 percent in March, the largest monthly advance for the index 
since a 0.8 percent rise in April 2011. In March, higher prices for nonagricultural goods and agricultural 
goods each contributed to the advance. Despite recording the largest monthly increase in 11 months, overall 
export prices rose only 0.9 percent over the past 12 months, the smallest year-over-year advance since a 0.4 
percent rise for the November 2008-09 period.   

Agricultural Exports: Prices for agricultural exports rose 2.7 percent in March following a 0.6 percent 
downturn the previous month. An 8.3 percent increase in soybean prices and a 2.6 percent rise in corn prices 
more than offset a 6.5 percent drop in cotton prices. Prices for fruit, wheat, and nuts also rose, up 4.5 
percent, 1.4 percent, and 2.1 percent, respectively. Despite the monthly increase, overall agricultural prices 
decreased 5.5 percent over the past year.       

All Exports Excluding Agriculture: The price index for nonagricultural exports rose 0.5 percent in March, 
led by a 1.3 percent increase in nonagricultural industrial supplies and materials prices. Each of the major 
finished goods categories also advanced in March. Nonagricultural prices rose 1.7 percent over the past 12 
months. 


                                        SELECTED MARCH HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices advanced 1.7 
percent in March after rising 0.9 percent the previous month. The March increase was the largest monthly 
advance since a 2.0 percent rise in March 2011, and was led by a 3.3 percent increase in unfinished metals 
prices. The advance in unfinished metals prices was driven by a 4.8 percent rise in gold prices and a 7.8 
percent increase in the price index for other precious metals.            

Finished Goods: Finished goods prices rose overall in March, with capital goods prices advancing 0.2 
percent and prices of automotive vehicles increasing 0.3 percent. The price index for consumer goods was 
unchanged. The March increase in capital goods prices was led by a 0.4 percent gain in computer prices, 
while the advance in automotive prices was driven by a 0.5 percent increase in the price index for passenger 
cars.          
 
Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages rose 1.8 percent in March following a 
2.8 percent decline the previous month. A 14.5 percent advance in vegetable prices and a 5.7 percent 
increase in fruit prices were the largest contributors to the overall rise.    

Imports by Locality of Origin: The price indexes for imports from Canada, the European Union, and 
Mexico increased 1.2 percent, 0.9 percent, and 1.1 percent, respectively, in March. Higher fuel prices were 
the primary contributing factor for the increases. In contrast, import prices from China and Japan were each 
unchanged in March.         

Transportation Services: The index for import air passenger fares fell 1.0 percent in March, the first 
monthly decline since a 0.7 percent drop in November. A 6.6 percent decrease in Asian fares and a 2.4 
percent fall in European fares each contributed to the March decline. Import air freight prices rose 2.6 
percent in March, the first monthly increase for the index since a 1.1 percent advance in August and the 
largest rise since a 5.8 percent increase in May.    

Export Prices
 
Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and 
materials increased 1.3 percent in March following a 1.1 percent advance in February. A 2.3 percent rise in 
fuel prices led the March increase, although higher prices for metals and chemicals also contributed to the 
overall advance.      
  
Finished Goods: Each of the major finished goods categories recorded increases in March. Capital goods 
prices rose 0.2 percent for the second consecutive month. Prices for automotive vehicles also advanced 0.2 
percent in March following a 0.3 percent increase the previous month, while the price index for consumer 
goods advanced 0.3 percent, after ticking up 0.1 percent in February.                 

Transportation Services: Export air passenger fares fell 1.1 percent in March following a 4.5 percent 
decline the previous month. The March decrease was led by a 3.5 percent decrease in European fares. In 
contrast, the price index for export air freight rose 1.4 percent after increasing 0.3 percent in February.
		
Import and Export Price Index data for April 2012 are scheduled for release on Thursday, May 10, 
2012 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.