Transmission of material in this release is embargoed until					   USDL-12-1180
8:30 a.m. (EDT) Tuesday, June 12, 2012

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			       U.S. IMPORT AND EXPORT PRICE INDEXES - MAY 2012

U.S. import prices decreased 1.0 percent in May, the U.S. Bureau of Labor Statistics reported today, after 
no change the previous month. Lower fuel and nonfuel prices each contributed to the May decrease in 
overall import prices. U.S. export prices also declined in May, falling 0.4 percent after a 0.4 percent increase 
in April. 

Imports
 	
All Imports: The price index for overall imports fell 1.0 percent in May, the largest one-month drop since 
the index declined 1.2 percent in June 2010. Prices for U.S. imports also decreased over the past 12 months, 
falling 0.3 percent, the first year-over-year decline for the index since import prices fell 5.6 percent between 
October 2008 and October 2009. The decrease over the May 2011-12 period was led by lower fuel prices 
which more than offset an increase in nonfuel prices.  

Fuel Imports: Fuel prices fell 4.2 percent in May, the largest monthly drop for the index since a 5.1 percent 
decrease in May 2010. The price index for import fuels declined 3.9 percent over the past year after rising 
43.7 percent for the year ended May 2011. The decline over the past year was the largest 12-month drop in 
fuel prices since the index fell 14.2 percent for the October 2008-09 period. Decreasing petroleum and 
natural gas prices each factored into the declines in overall fuel prices in May and over the past 12 months. 
Petroleum prices fell 4.2 percent for the month and 2.0 percent for the year ended in May, while prices for 
natural gas decreased 4.8 percent and 49.6 percent, respectively, over the same periods.       

All Imports Excluding Fuel: Prices for nonfuel imports edged down 0.1 percent in May, the first monthly 
decline since the index fell 0.2 percent in November 2011. The May decrease followed increases of 0.2 
percent in April and 0.5 percent in March. Lower prices for foods, feeds, and beverages; consumer goods; 
and automotive vehicles more than offset a 0.1 percent advance in nonfuel industrial supplies and materials 
prices. Despite the May decline, the price index for nonfuel imports rose 1.0 percent over the past year.    

Table A. Percent changes

Exports

All Exports: Export prices fell 0.4 percent in May after increasing 2.0 percent over the first four months of 
2012. The May decline was driven by lower prices for nonagricultural exports, which more than offset 
increasing agricultural prices. Overall export prices edged down 0.1 percent between May 2011 and May 
2012, the first 12-month drop in the index since a 3.6 percent decrease for the year ended October 2009. 
The 12-month decline was led by lower agricultural prices.   

Agricultural Exports: Led by a 5.1 percent rise in soybean prices, the index for agricultural exports rose 0.7 
percent in May following a 2.0 percent increase the previous month. Despite the recent advances, 
agricultural prices fell 1.3 percent over the past 12 months. Lower prices for cotton, wheat, and corn over the 
past year all contributed to the decline.        

All Exports Excluding Agriculture: The price index for nonagricultural exports fell 0.5 percent in May, the 
first monthly decline since a 0.2 percent decrease in December 2011 and the largest since a 1.4 percent drop 
in October 2011. In May, falling nonagricultural industrial supplies and materials prices more than offset 
higher finished goods prices. Overall nonagricultural prices ticked up 0.1 percent over the past year. 


					   SELECTED MAY HIGHLIGHTS


Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices edged up 0.1 
percent in May after rising 0.5 percent in April. An 8.0 percent rise in fertilizer prices was the largest 
contributor to the May advance. 

Finished Goods: Prices for import finished goods recorded little movement in May, with the price indexes 
for consumer goods and automotive vehicles each edging down 0.1 percent and capital goods prices 
remaining unchanged.  
 
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices decreased 0.7 percent in May after 
ticking up 0.1 percent the previous month. The May decline was led by a 4.1 percent drop in fruit prices and 
a 2.5 percent decrease in the price index for fish and shellfish. In contrast, vegetable prices advanced 3.2 
percent in May. 

Imports by Locality of Origin: The price indexes for imports from Canada, Mexico, and the European 
Union decreased in May, falling 1.3 percent, 0.7 percent, and 0.1 percent, respectively. Each index was 
driven by lower fuel prices. In contrast, import prices from Japan rose 0.2 percent in May and increased by 
1.1 percent over the past year. Prices for imports from China were unchanged in May after declining 0.3 
percent in April and recording no change in March. Despite falling over the past three months, import prices 
from China increased 1.7 percent for the year ended in May.  

Transportation Services: The index for import air passenger fares advanced 0.6 percent in May, led by a 
6.1 percent increase in Asian fares. Import air passenger fares rose 5.1 percent over the past year, driven by a 
10.2 percent jump in Asian fares. European fares ticked up 0.2 percent over the May 2011-12 period, while 
Latin American/Caribbean fares advanced 0.8 percent. Import air freight prices rose 0.3 percent in May, but 
fell 4.1 percent over the past 12 months. 


Export Prices
 
Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and 
materials fell 1.7 percent in May following a 0.5 percent increase the previous month. The May decline was 
led by a 4.6 percent drop in fuel prices, although a 0.8 percent decrease in chemical prices and a 1.5 percent 
decline in prices for nonferrous metals also contributed to the overall decrease.
  
Finished Goods: Finished goods prices were mixed in May. Prices for consumer goods rose 0.7 percent and 
automotive vehicles prices ticked up 0.1 percent. The price index for capital goods was unchanged as a 0.3 
percent drop in computers, peripherals, and semiconductor prices offset a 0.2 percent increase in prices for 
capital goods excluding computers.    

Transportation Services: Export air passenger fares increased 3.2 percent in May, driven by a 6.6 percent 
increase in Asian fares. Export air passenger fares rose 4.9 percent over the past year. Export air freight 
prices advanced 0.2 percent in May and 1.7 percent over the past 12 months. 
		
Import and Export Price Index data for June 2012 are scheduled for release on Thursday, July 12, 
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.