Transmission of material in this release is embargoed until					 USDL-14-1675
8:30 a.m. (EDT) Friday, September 12, 2014

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

Prices for U.S. imports decreased 0.9 percent in August following a 0.3-percent decline in July, the U.S. 
Bureau of Labor Statistics reported today. Both the August and July drops in overall import prices were 
driven by lower fuel prices. U.S. export prices declined 0.5 percent in August, after ticking up 0.1 percent 
the previous month.

Imports

All Imports: Prices for overall imports declined 0.9 percent in August, the largest monthly drop in import 
prices since a 0.9-percent decrease in November 2013; those were the largest declines since a 2.3-percent 
drop in June 2012. The August 2014 decrease resulted from lower fuel prices which more than offset a 0.1-
percent increase in nonfuel prices. The price index for overall imports fell 0.4 percent for the year ended in 
August, the first 12-month decline since a 0.4-percent decrease in April.       

Fuel Imports: Import fuel prices fell 4.6 percent in August following a 1.7-percent decline in July. The 
August drop in fuel prices was the largest 1-month decrease for the index since an 8.5-percent decline in 
June 2012. Both petroleum and natural gas prices contributed to the decrease in August fuel prices, 
declining 4.4 percent and 11.6 percent, respectively. Prices for imported fuel decreased 4.5 percent over the 
past year, after rising 4.1 percent between August 2012 and August 2013. The 12-month decrease for fuel 
prices in August was led by a 5.3-percent drop in petroleum prices which more than offset a 35.4-percent 
jump in natural gas prices.   

All Imports Excluding Fuel: The 0.1-percent advance in nonfuel prices in August was the first monthly 
uptick in the price index for nonfuel imports since a 0.3-percent rise in March. Higher prices for foods, 
feeds, and beverages; nonfuel industrial supplies and materials; and automotive vehicles all contributed to 
the August increase. The price index for nonfuel imports rose 0.7 percent over the past year.      

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

Exports

All Exports: Export prices declined 0.5 percent in August following a 0.1-percent uptick in July and a 0.5-
percent drop in June. In August, both agricultural and nonagricultural prices contributed to the decrease. 
Despite declines in August and June, export prices advanced 0.4 percent over the past 12 months as rising 
nonagricultural prices more than offset lower prices for agricultural exports.           

Agricultural Exports: Prices for agricultural exports fell 2.8 percent in August, after recording declines of 
2.0 percent and 1.7 percent in July and June. The August decrease was the largest monthly drop since the 
index fell 4.2 percent in August 2013. Declining prices for soybeans, fruit and corn were major contributors 
to the recent drop in agricultural prices; soybean prices fell 8.6 percent in August while the price indexes for 
fruit and corn decreased 5.4 percent and 6.5 percent, respectively. The decline in agricultural prices over the 
past 3 months drove the index down 1.3 percent for the year ended in August.                             

All Exports Excluding Agriculture: The price index for nonagricultural exports decreased 0.3 percent in 
August following a 0.3-percent rise the previous month. In August, lower prices for nonagricultural 
industrial supplies and materials and automotive vehicles more than offset higher capital goods prices. 
Despite the August decrease, nonagricultural export prices increased 0.5 percent over the past 12 months.  

					  SELECTED AUGUST HIGHLIGHTS

Import Prices

Imports by Locality of Origin: The price index for imports from China edged down 0.1 percent in August, 
after decreasing 0.2 percent the previous month. The August decline was driven by the second consecutive 
0.3-percent monthly drop in the price index for computers and other electronic equipment. Despite the 
recent decreases, import prices from China increased 0.2 percent for the year ended in August. Import prices 
from Canada and Mexico also fell in August, decreasing 1.6 percent and 0.3 percent, respectively. Both 
indexes were led by lower fuel prices. In contrast, prices for imports from the European Union ticked up 0.1 
percent for the third consecutive month in August. The price index for imports from Japan was unchanged 
in August.       

Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials 
ticked up 0.1 percent in August, after rising 0.5 percent in July. The August increase was led by a 0.3-
percent advance in chemical prices.       

Finished Goods: Prices for each of the major finished goods categories recorded little change in August. 
Automotive vehicles prices advanced 0.1 percent in August following a 0.7-percent drop in July that was the 
largest monthly decrease since a 1.1-percent decline in December 1992. The price indexes for capital goods 
and consumer goods each recorded no change in August.     

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices advanced for the second consecutive 
month in August, rising 0.6 percent following a 1.1-percent increase the previous month. Higher meat prices 
contributed to both monthly advances in overall foods, feeds, and beverages prices, rising 5.5 percent in 
August and 5.6 percent in July.   

Transportation Services: Import air passenger fares fell 4.3 percent in August following a 2.8-percent 
decline the previous month. The August decrease was the largest monthly decline since a 6.4-percent drop 
in January, and was led by a 6.9-percent decrease in European fares. Despite the recent declines, import air 
passenger fares advanced 6.7 percent over the past year. The price index for import air freight rose 0.3 
percent in August and 2.3 percent over the past 12 months.      

Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and 
materials decreased 0.8 percent in August following a 0.7-percent increase in July and a 0.9-percent decline 
in June. The August drop was driven by a 3.1-percent decrease in export fuel prices.

Finished Goods: Prices for the major finished goods areas were mixed in August. Capital goods prices 
ticked up 0.1 percent, after edging down 0.2 percent the previous month. Prices for automotive vehicles fell 
0.2 percent in August, the largest 1-month decline since the index decreased 0.3 percent in August 2012. 
The price index for export consumer goods recorded no change in August following a 0.4-percent increase 
in July.    

Transportation Services: Export air passenger fares rose 5.2 percent in August, driven by higher Asian 
fares. Overall export fares also rose for the year ended in August, increasing 3.6 percent. Export air freight 
prices were unchanged in August and increased 9.4 percent over the past year. 

Import and Export Price Index data for September 2014 are scheduled for release on Friday, October 
10, 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.