Transmission of material in this release is embargoed until                                  USDL-10-0811
8:30 a.m. (EDT) Tuesday, June 15, 2010

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                           U.S. IMPORT AND EXPORT PRICE INDEXES - MAY 2010

U.S. import prices declined 0.6 percent in May, the U.S. Bureau of Labor Statistics reported today, after 
rising 1.1 percent in April and 0.4 percent in March. The decrease was led by falling fuel prices, which more 
than offset a rise in nonfuel prices. In contrast, the price index for U.S. exports increased 0.7 percent in May 
following increases of 1.2 percent and 0.7 percent in April and March, respectively.


Imports

All Imports: Import prices fell 0.6 percent in May, the first decline for the index since edging down 0.1 
percent in February and the largest monthly drop since a similar 0.6 percent decrease in July 2009. Despite 
the May decline, import prices rose 8.6 percent over the past 12 months. Prices of overall imports have been 
up on a 12-month basis since declining 5.6 percent for the October 2008-09 period.

Fuel Imports: Fuel prices reversed the recent upward trend, falling 4.9 percent in May. The drop was the 
first one-month decrease since a 0.7 percent decline in February and the largest monthly decrease since a 
22.2 percent fall in December 2008. The May decline was primarily driven by a 5.0 percent drop in 
petroleum prices, which accounted for approximately 95 percent of the decrease; natural gas prices fell as 
well, decreasing 3.5 percent. Fuel prices have trended up over most of the past year, rising 33.9 percent. The 
price indexes for petroleum and natural gas advanced for the year ended in May, rising 35.9 percent and 
17.0 percent, respectively.

All Imports Excluding Fuel: In contrast to fuel prices, nonfuel prices continued to trend up in May, rising 
0.5 percent. Nonfuel import prices last recorded a monthly decline in July 2009 and rose 3.6 percent over the 
past 12 months. A 1.9 percent increase in nonfuel industrial supplies and materials prices was the largest 
contributor to the overall advance, while foods, feeds, and beverages prices and finished goods prices 
advanced as well. 


Table A. Percent changes

Exports
 
All Exports: Export prices rose 0.7 percent in May, the sixth time in the last seven months that the index 
increased by at least that magnitude. In May, higher prices for nonagricultural goods and agricultural goods 
each contributed to the advance, with the rise in nonagricultural prices accounting for approximately 78 
percent of the overall increase. The price index for overall exports rose 5.8 percent for the year ended in 
May, the largest 12-month advance since a 7.0 percent increase between September 2007 and September 
2008. 

Agricultural Exports: The price index for agricultural exports increased 1.4 percent in May following a 0.4 
percent downturn the previous month. A 5.5 percent increase in corn prices was the largest factor for the 
May advance, while meat, wheat, and soybeans prices also rose, up 3.2 percent, 6.4 percent, and 2.7 percent, 
respectively. Prices of agricultural exports advanced 1.3 percent over the past year. 

All Exports Excluding Agriculture: Prices for nonagricultural exports increased 0.6 percent in May after 
rising 1.3 percent in April. A 1.9 percent increase in nonagricultural supplies and materials more than offset 
declining finished goods prices. Nonagricultural prices increased 6.2 percent over the May 2009-2010 
period, led by an 18.0 percent increase for the price index of nonagricultural supplies and materials. 

 					

                                         SELECTED MAY HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials 
increased 1.9 percent in May following a 3.1 percent advance the previous month. The May rise was driven 
by continued increases in unfinished metals prices, up 3.5 percent. That increase was in turn driven by higher 
prices for precious metals, iron and steel mill products, nickel, aluminum, and copper. 

Finished Goods: Finished goods prices advanced overall, led by a 0.2 percent increase in capital goods 
prices and a 0.1 percent uptick in consumer goods prices. A 1.5 percent increase in the price index for 
computer accessories, peripherals, and parts was the largest contributor to the advance in capital goods 
prices, although higher prices for drilling and oil field equipment, up 2.0 percent, were also a factor. 
 
Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages rose 1.4 percent in May after a 1.1 
percent advance in April. A 3.7 percent increase in vegetable prices, a 2.7 percent advance in meat prices, 
and a 2.1 percent rise in fruit prices all contributed to the overall increase.   

Imports by Locality of Origin: Prices of imports from China rose 0.3 percent in May after rising 0.2 percent 
in April. Those were the first monthly increases since a 0.2 percent advance in December and the May 
advance was the largest one-month gain since a 0.3 percent jump in August 2009. Import prices from the 
European Union and from Japan each rose 0.1 percent, while the price indexes for imports from Canada and 
from Mexico, down 0.6 percent and 1.0 percent, respectively, fell as the result of lower fuel prices.

Transportation Services: Import air passenger fares rose 2.8 percent in May, the result of a 6.6 percent 
increase in Asian fares and a 3.7 percent advance in European fares. The overall increase followed advances 
of 4.2 percent and 5.3 percent in April and March, respectively. The price index for import air freight prices 
increased 2.1 percent in May.


Export Prices
 
Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials 
prices continued to trend upward in May, increasing 1.9 percent following a 3.2 percent advance the 
previous month. The increase was led by a 4.2 percent advance in fuel prices that was driven by a sharp 
increase in coal prices. Higher prices for chemicals and metals also contributed to the advance.
 
Finished Goods: Finished goods prices, which had been trending up over the past year, fell overall in May 
with capital goods prices and consumer goods prices edging down 0.2 percent and 0.1 percent, respectively. 
Those declines followed increases in April: capital goods prices rose 0.3 percent while prices for consumer 
goods advanced 1.0 percent. Automotive vehicle prices were unchanged in May.  

Transportation Services: Export air passenger fares fell 0.7 percent in May following increases of 2.8 
percent and 1.7 percent the two previous months. The decline was driven by a 6.9 percent drop in Latin 
American/Caribbean fares. Export air freight prices rose 1.1 percent in May.
		
Import and Export Price Index data for June 2010 are scheduled for release on Wednesday, July 14, 
2010 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.  
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