Transmission of material in this release is embargoed until				   USDL-15-2164
8:30 a.m. (EST) Tuesday, November 10, 2015

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                         U.S. IMPORT AND EXPORT PRICE INDEXES - OCTOBER 2015


U.S. import prices declined 0.5 percent in October, after falling 0.6 percent the previous month, the U.S. 
Bureau of Labor Statistics reported today. Lower prices for both fuel and nonfuel imports contributed to the 
October decrease. Prices for U.S. exports fell 0.2 percent in October, following a 0.6-percent drop in 
September. 

Imports

All Imports: Overall import prices decreased 0.5 percent in October, continuing a downward trend for the 
index in 2015. Prices for U.S. imports previously decreased 0.6 percent in September, 1.8 percent in August, 
and 0.9 percent in July. The price index for overall imports declined 10.5 percent between October 2014 and 
October 2015, after decreasing 2.1 percent for the year ending in October 2014.            

Fuel Imports: Import fuel prices decreased 2.0 percent in October, following a 5.4-percent decline the 
previous month. In October, both a 2.1-percent drop in petroleum prices and a 2.5-percent decrease in 
natural gas prices contributed to the overall drop in import fuel prices. Fuel prices declined 46.6 percent 
over the past 12 months. Prices for petroleum fell 48.0 percent for the year ending in October, while natural 
gas prices decreased 30.3 percent over the same period. 

All Imports Excluding Fuel: Nonfuel import prices also continued to decline in October, falling 0.3 
percent, after a 0.2-percent drop the previous month. The price index for nonfuel imports has not recorded a 
monthly advance since the index ticked up 0.1 percent in July 2014. In October, lower prices for nonfuel 
industrial supplies and materials; foods, feeds, and beverages; automotive vehicles; and capital goods all 
contributed to the overall decrease in nonfuel import prices. Nonfuel import prices declined 3.2 percent over 
the past year, the largest 12-month drop for the index since a 4.2-percent decrease between September 2008 
and September 2009.     

Table A. Percent change in Import and Export Price Indexes, selected categories

Exports 

All Exports: The price index for U.S. exports declined 0.2 percent in October, following decreases of 0.6 
percent in September and 1.4 percent in August. Lower prices for both agricultural exports and 
nonagricultural exports factored into the overall decrease in October. Overall export prices also declined 
over the past 12 months, decreasing 6.7 percent after a 0.7-percent decline for the year ending in October 
2014.                  

Agricultural Exports: Prices for agricultural exports edged down 0.1 percent in October, after decreasing 
1.3 percent the previous month. A 2.7-percent decline for meat prices led the October decrease, although 
lower prices for vegetables and nuts also contributed. In contrast, prices for wheat and corn rose in October, 
partially offsetting the declines. Agricultural export prices fell 11.8 percent over the past year, driven by 
declining prices for meat, soybeans, and wheat.  

All Exports Excluding Agriculture: Nonagricultural export prices decreased 0.3 percent in October, 
following a 0.5-percent drop in September. In October, the decline was driven by lower prices for 
nonagricultural industrial supplies and materials, consumer goods, and automotive vehicles. The price index 
for nonagricultural exports declined 6.1 percent for the year ending in October.        



                                      SELECTED OCTOBER HIGHLIGHTS

Import Prices

Imports by Locality of Origin: Import prices from China edged down 0.1 percent in October, after falling 
0.2 percent in September. Prices for imports from China have not recorded a monthly increase since the 
index ticked up 0.1 percent in December, and the index fell 1.4 percent over the past 12 months. Driven by 
lower fuel prices, the price indexes for imports from Canada and Mexico also declined in October, falling 
1.0 percent and 0.5 percent, respectively. In contrast, import prices from the European Union ticked up 0.1 
percent in October, while prices for imports from Japan recorded no change.                  

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices decreased 1.0 
percent in October, following a 0.9-percent drop in September. The October decline was led by a 5.9-
percent decrease in fertilizer prices and a 2.9-percent fall in the price index for industrial organic chemicals. 
Nonfuel industrial supplies and materials prices fell 10.4 percent over the past year, the largest 12-month 
decline since the index decreased 11.3 percent in October 2009.   

Finished Goods: Prices for the major finished goods categories were mostly down in October. Automotive 
vehicles prices declined 0.3 percent while prices for capital goods decreased 0.1 percent. The drop in 
automotive vehicles prices was driven by a 3.1-percent decline in transport vehicles prices and was the 
largest monthly decrease since the index fell 0.4 percent in February. In contrast, consumer goods prices 
ticked up 0.1 percent in October.              

Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages decreased 1.0 percent in 
October, after a 0.7-percent decline the previous month. The October drop was led by an 8.0-percent 
decrease in meat prices and a 4.3-percent decline in vegetable prices.            

Transportation Services: Import air passenger fares rose 5.2 percent in October, the first monthly advance 
since the index increased 8.9 percent in June. The index decreased 4.5 percent in September, 5.1 percent in 
August, and 4.1 percent in July. Despite the October upturn, import air passenger fares decreased 4.7 
percent over the past 12 months. Import air freight prices advanced 6.5 percent in October, while the index 
declined 2.6 percent over the past year.   


Export Prices

Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and 
materials decreased 0.7 percent in October, following a 1.6-percent decline the previous month. Both 
decreases were led by falling fuel prices, which decreased 1.5 percent in October and 5.0 percent in 
September.     

Finished Goods: Finished goods prices declined in October. Both the price indexes for consumer goods and 
automotive vehicles edged down 0.1 percent. Capital goods prices recorded no change for the second 
consecutive month in October.             

Transportation Services: Export air passenger fares advanced 0.5 percent in October, after decreasing 10.6 
percent in September. The October rise was driven by a 5.6-percent increase in Latin American/Caribbean 
fares. Despite the October increase, export air passenger fares fell 13.1 percent over the past year. The price 
index for export air freight declined 0.3 percent in October and 1.7 percent over the past 12 months.         

Import and Export Price Index data for November 2015 are scheduled for release on Thursday, December 10, 
2015 at 8:30 a.m. (EST).    

                                            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.