Transmission of material in this release is embargoed until					USDL-14-1499
8:30 a.m. (EDT) Thursday, August 14, 2014

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                         U.S. IMPORT AND EXPORT PRICE INDEXES - JULY 2014

U.S. import prices declined 0.2 percent in July, after increasing each of the 2 previous months, the U.S. 
Bureau of Labor Statistics reported today. The July decrease was driven by falling fuel prices. Prices for 
U.S. exports were unchanged in July following a 0.4-percent decrease in June. In July, declining agricultural 
prices offset higher nonagricultural prices.

Imports

All Imports: Overall import prices fell 0.2 percent in July, the first monthly decline for the index since a 
0.6-percent drop in April. Import prices ticked up 0.1 percent in June and rose 0.3 percent in May. The price 
index for overall imports advanced 0.8 percent over the past 12 months, a similar movement to the 0.9-
percent increase from July 2012 to July 2013. Both higher fuel and nonfuel prices contributed to the most 
recent year-over-year increase, in contrast to the rise for the year ended in July 2013 which was driven 
solely by higher fuel prices.      

Fuel Imports: Import fuel prices fell 1.2 percent in July, after rising 1.0 percent in June and 1.3 percent in 
May. The July decrease was led by a 1.2-percent drop in petroleum prices which more than offset a 1.8-
percent increase in natural gas prices. Despite the July decline, import fuel prices rose 2.6 percent over the 
past year, after increasing 7.7 percent between July 2012 and July 2013. A 1.7-percent rise in petroleum 
prices and a 44.1-percent jump in natural gas prices both contributed to the year-over-year increase for fuel 
prices in July.           

All Imports Excluding Fuel: Nonfuel prices were unchanged for the third time in the past 4 months in 
July, after edging down 0.1 percent in June. The price indexes for nonfuel industrial supplies and materials; 
foods, feeds, and beverages; and consumer goods all rose in July, but lower automotive vehicles prices 
offset the increases. Capital goods prices were unchanged. Prices for nonfuel imports advanced 0.4 percent 
for the year ended in July, led by 0.3-percent increases in March and January.     

Table A. Percent change in import and export price indexes, selected categories

Exports

All Exports: Prices for overall exports recorded no change in July following a 0.4-percent decline in June. 
Export prices fell 1.3 percent over the past 4 months, after increasing 1.7 percent over February and March. 
Overall, the price index for U.S. exports rose 0.4 percent over the past 12 months. Rising nonagricultural 
prices between July 2013 and July 2014 more than offset a drop in agricultural prices.         

Agricultural Exports: The price index for agricultural exports fell 2.2 percent in July, the largest monthly 
drop since the index fell 4.2 percent in August 2013. The July decline followed a 1.7-percent decrease the 
previous month. A 5.6-percent decline in soybean prices, a 7.6-percent drop in corn prices, and an 8.2-
percent decrease in cotton prices were the largest contributors to the July decline. Agricultural export prices 
fell 2.9 percent over the past year, driven by lower prices for soybeans, corn, and vegetables. 

All Exports Excluding Agriculture: Nonagricultural export prices advanced 0.3 percent in July following 
a 0.3-percent decline in June. The July increase was led by higher prices for nonagricultural industrial 
supplies and materials and consumer goods. Capital goods prices edged down 0.1 percent and automotive 
vehicles prices were unchanged.  


                                     SELECTED JULY HIGHLIGHTS


Import Prices

Imports by Locality of Origin: Import prices from China fell 0.2 percent in July, the largest monthly 
decline since a 0.6-percent drop in May 2013. The July decrease was led by a 0.2-percent decrease in 
computer and electronic products prices. Despite the July decline, prices for imports from China advanced 
0.3 percent over the past year. The price index for imports from Japan decreased 0.3 percent in July, after 
recording no change the previous month. Import prices from Japan have trended down since the end of 2012 
and fell 1.6 percent over the past 12 months. Prices for imports from Mexico and Canada also declined in 
July, decreasing 0.4 percent and 0.2 percent, respectively. In contrast, import prices from the European 
Union ticked up 0.1 percent in July.       

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices increased 0.5 
percent in July following a 0.2-percent decline in June. The July advance was driven by 5.8-percent rises in 
the price indexes for gold and other precious metals.      

Finished Goods: The price index for import automotive vehicles declined 0.8 percent in July, the first 
monthly decrease for the index since a 0.1-percent decline in February and the largest 1-month drop since 
the index fell 1.1 percent in December 1992. The July decline was driven by a 1.1-percent drop in passenger 
car prices. In contrast, consumer goods prices ticked up 0.1 percent in July, after recording no change in 
each of the 2 previous months. Capital goods prices were unchanged in July.  

Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages rose 1.0 percent in July following a 
1.6-percent decrease in June. Higher prices for meat, alcohol, coffee, and vegetables all contributed to the 
increase in July.   

Transportation Services: Import air passenger fares decreased 2.8 percent in July, the first monthly drop 
since a 3.4-percent decline in March. The July decrease was led by a 5.3-percent decline in European fares. 
Despite the July drop, import air passenger fares increased 2.6 percent over the past 12 months. Import air 
freight prices decreased 0.3 percent in July, but rose 1.8 percent over the past year.      


Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials 
prices advanced 0.9 percent in July, after falling 0.9 percent the previous month. The July increase was 
driven by a 4.2-percent rise in nonferrous metal prices, although a 0.5-percent advance in fuel prices also 
contributed to the increase.

Finished Goods: Prices for the major finished goods areas were mixed in July. Consumer goods prices rose 
0.3 percent, led by a 1.7-percent advance for medicinal, dental, and pharmaceutical prices. In contrast, 
capital goods prices edged down 0.1 percent, driven by a 1.2-percent drop in computers, peripherals, and 
semiconductor prices. Automotive vehicles prices were unchanged in July.   

Transportation Services: Export air passenger fares advanced 3.5 percent in July following a 4.8-percent 
increase in June. The index increased 0.4 percent for the year ended in July, led by a 3.3-percent rise in 
Asian fares. The price index for export air freight fell 0.2 percent in July, but increased 9.4 percent over the 
past 12 months. 

Import and Export Price Index data for August 2014 are scheduled for release on Friday, September 
12, 2014 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). 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.