Transmission of material in this release is embargoed until					USDL-11-1033
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		              U.S. IMPORT AND EXPORT PRICE INDEXES - JUNE 2011

U.S. import prices fell 0.5 percent in June, the U.S. Bureau of Labor Statistics reported today, the first 
monthly decline since June 2010. Declining fuel and nonfuel prices both contributed to the overall decrease. 
U.S. export prices ticked up 0.1 percent in June after rising 0.2 percent in May.

Imports
 	
All Imports: Import prices decreased 0.5 percent in June following a 0.1 percent uptick the previous month. 
The June drop was the first monthly decline since the index fell 1.2 percent in June 2010. Prior to May, 
import prices rose at least one percent in each of the previous seven months. Import prices increased 13.6 
percent for the year ended in June, the largest year-over-year advance since the index rose 18.1 percent 
between August 2007 and August 2008. 

Fuel Imports: Fuel prices fell for the second consecutive month in June, decreasing 1.6 percent following a 
0.8 percent drop in May. The decrease in fuel prices accounted for most of the June decline in overall import 
prices. Both petroleum and natural gas prices contributed to the June decrease in fuel prices, falling 1.6 
percent and 1.4 percent, respectively. Despite the declines over the past two months, fuel prices rose 46.9 
percent over the past year. That increase was primarily led by a 49.8 percent jump in petroleum prices.   

All Imports Excluding Fuel: The price index for imports excluding fuel edged down 0.1 percent in June, 
the first monthly decline for the index since a 0.3 percent decrease in July 2010. The June decline was driven 
by a 0.4 percent decrease in nonfuel industrial supplies and materials prices and a 1.9 percent drop in foods, 
feeds, and beverages prices, which more than offset higher prices for automotive vehicles and consumer 
goods. Nonfuel import prices advanced 4.8 percent for the year ended in June.       

Table A. Percent changes

 
Exports

All Exports: Export prices continued to rise in June, ticking up 0.1 percent after a 0.2 percent increase the 
previous month. The recent increases were the smallest since the index declined 0.2 percent in July 2010. 
The June advance was led by higher agricultural prices as nonagricultural prices remained unchanged for the 
month. The price index for overall exports advanced 9.9 percent for the June 2010-11 period, the largest 12-
month increase in export prices since the index rose 10.2 percent between July 2007 and July 2008. 

Agricultural Exports: Agricultural prices resumed an upward trend in June, rising 0.7 percent following a 
2.0 percent downturn in May. Higher prices for corn, soybeans, and wheat, up 3.2 percent, 2.3 percent, and 
4.4 percent, respectively, all contributed to the June increase. The price index for agricultural exports 
advanced 31.2 percent over the past year, an increase that was also driven by rising prices for corn, 
soybeans, and wheat, as well as an 80.6 percent advance in cotton prices. 

All Exports Excluding Agriculture: The price index for nonagricultural goods was unchanged in June after 
rising 0.5 percent in May. In June, higher finished goods prices offset a 0.7 percent decline in nonagricultural 
industrial supplies and materials prices. Prices for nonagricultural exports rose 7.8 percent for the year ended 
in June, driven mostly by an 18.6 percent increase in the price index for nonagricultural industrial supplies 
and materials.
   
 					  SELECTED JUNE HIGHLIGHTS

Import Prices

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 0.4 percent 
in June, the first time the index has recorded a monthly decline since a 1.1 percent decrease in July 2010. A 
2.6 percent downturn in unfinished metals prices led the June decline. The price index for unfinished metals 
also last recorded a decrease in July 2010, and despite the June drop, rose 21.3 percent over the past 12 
months.        

Finished Goods: Finished goods prices increased overall in June. Automotive vehicles prices rose 0.3 
percent, following advances of 0.5 percent, 0.4 percent, and 0.5 percent, respectively, the previous three 
months. Prices for consumer goods ticked up 0.1 percent, led by a second consecutive 0.7 percent rise in the 
price index for cotton apparel and household goods, which has risen 10.3 percent over the past year. Capital 
goods prices were unchanged in June.     
 
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices declined 1.9 percent in June following a 
0.7 percent drop the previous month. Both decreases were primarily driven by falling vegetable prices, down 
16.1 percent in June and 9.4 percent in May.   

Imports by Locality of Origin: The price index for imports from China advanced 0.1 percent in June, the 
smallest monthly advance since the index was unchanged in September 2010. Import prices from China have 
risen 3.1 percent over the past year, the largest 12-month increase since November 2008. Prices for imports 
from the European Union also rose 0.1 percent in June. In contrast, import prices from Mexico and from 
Canada declined in June, decreasing 2.2 percent and 1.0 percent, respectively.   

Transportation Services: Import air fare prices rose 6.8 percent in June after advancing 5.6 percent in May. 
Both increases were driven by seasonal increases in European and Asian air fares. The index for import air 
fares advanced 5.0 percent for the year ended in June. In contrast, import air freight prices edged down 0.1 
percent in June.     

Export Prices
 
Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and 
materials decreased 0.7 percent in June, the first decline since a similar 0.7 percent drop in July 2010. A 2.1 
percent downturn in fuels and lubricants prices was the primary contributor to the overall decrease. Despite 
the June decline, the price index for fuels and lubricants increased 35.5 percent over the past 12 months.     
 
Finished Goods: Each of the major finished goods categories recorded increases in June. Consumer goods 
prices advanced 1.4 percent, the largest monthly increase since a 1.7 percent rise in April 1991. The price 
indexes for capital goods and automotive vehicles also advanced in June, rising 0.2 percent and 0.1 percent, 
respectively.             

Transportation Services: The index for export air passenger fares advanced 1.1 percent in June, following a 
3.6 percent increase in May. The June increase was led by a 13.9 percent rise in European air passenger fares, 
which more than offset an 8.1 percent drop in Asian fares. Export air freight prices declined 0.2 percent in 
June, but despite that decrease, rose 16.9 percent over the past year. 
		
Import and Export Price Index data for July 2011 are scheduled for release on Tuesday, August 16, 
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.  
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