Economic News Release

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Internet address:   http://www.bls.gov/mxp					  Tuesday, May 13, 2008


                                     U.S. IMPORT AND EXPORT PRICE INDEXES
                                                 - APRIL 2008 -

   The U.S. Import Price Index increased 1.8 percent in April, the Bureau of Labor Statistics of the 
U.S. Department of Labor reported today.  For the second consecutive month, higher prices for both 
petroleum and nonpetroleum imports contributed to the advance.  The rise followed a 2.9 percent 
increase in March.  Export prices also increased in April, rising 0.3 percent after advancing at least 1.0 
percent in each of the previous three months.

                               Percent changes in import and export price indexes
                                              by End Use category
                                          - not seasonally adjusted -
 

Import Goods
   
   The 1.8 percent rise in April followed increases of 2.9 percent, 0.2 percent, and 1.5 percent in 
March, February, and January, respectively.  Petroleum prices advanced 4.4 percent in April after a 9.2 
percent rise in March.  Prices for petroleum rose 57.2 percent for the year ended in April following a 1.1 
percent drop over the previous 12-month period.  Nonpetroleum prices increased 1.1 percent for the 
second consecutive month, matching the largest one-month increase for the index since nonpetroleum 
prices were first published on a monthly basis in December 1988.  The price indexes for overall imports 
and nonpetroleum imports advanced 15.4 percent and 6.2 percent, respectively, during the past year.          
   
   The largest contributor to the April increase in nonpetroleum prices was a 3.3 percent advance in 
the price index for nonpetroleum industrial supplies and materials.  That rise was mostly driven by a 
jump in unfinished metals prices, although higher prices for natural gas, finished metals, and chemicals 
also factored into the advance.  Over the past 12 months, nonpetroleum industrial supplies and materials 
prices rose 17.0 percent.        

   Prices for capital goods, automotive vehicles, and consumer goods were all up in April as well.  
Capital goods prices increased 0.8 percent, the largest increase for the index since an equivalent rise in 
May 1995.  Prices for capital goods advanced 2.1 percent over the past 12 months.  The price index for 
automotive vehicles rose 0.4 percent in April after advancing 0.2 percent in each of the previous two 
months.  Over the past year, the index went up 3.3 percent, the largest rise since an identical increase in 
August 1995.  Consumer goods prices advanced 0.2 percent in April after rising 0.4 percent in each of 
the previous two months.  Prices for consumer goods rose 2.8 percent for the year ended in April, the 
largest increase since a 3.9 percent advance in November 1992.   
   
   Prices for foods, feeds, and beverages rose 0.4 percent in April, following a 2.8 percent rise in 
March, as rising fruit prices more than offset falling prices for coffee.  
 
Export Goods 

   Export prices advanced a comparatively modest 0.3 percent in April following a 1.5 percent 
jump in March, which was the largest one-month increase since the index was first published in 
September 1983.  Prices of overall exports advanced 7.7 percent over the past year.  In April, a 0.6 
percent advance in nonagricultural prices more than offset a 2.2 percent downturn in agricultural prices.  
Prices for nonagricultural exports rose for the seventh consecutive month and advanced 5.6 percent for 
the year ended in April.  
   
   The increase in nonagricultural prices was led by the continued rise in the price index for 
nonagricultural industrial supplies and materials prices, which rose 1.3 percent in April after rising 3.8 
percent in March.  Higher prices for fuels, metals, and chemicals contributed to the increase.  
   
   Prices for each of the major finished goods indexes also rose in April.  Capital goods prices 
advanced 0.3 percent after falling 0.1 percent in March.  The price indexes for export automotive 
vehicles and consumer goods increased 0.4 percent and 0.2 percent, respectively.    
   
   Agricultural prices decreased 2.2 percent in April, the first decrease in 11 months and the largest 
decline since an 8.4 percent drop in August 2004.  Soybean and wheat prices led the downturn in 
agricultural prices, falling 13.7 percent and 17.8 percent, respectively.  Despite the decline, agricultural 
prices rose 32.3 percent over the past year. 

Imports by Locality of Origin 
	
   The price indexes for imports from Canada, the European Union, and Mexico increased in April, 
led by higher fuel prices.  Prices for imports from Canada rose 2.6 percent for the month and 18.1 
percent for the year ended in April.  Import prices from the European Union advanced 1.3 percent in 
April and 8.3 percent over the past year.  The price index for imports from Mexico increased 2.2 percent 
following a 2.9 percent rise in March.  Prices of imports from Mexico advanced 18.3 percent over the 
past 12 months.  
   
   Import prices from China also increased in April, rising 0.2 percent after a 0.6 percent gain the 
previous month.  Prices for imports from China rose 4.1 percent for the April 2007-08 period, the largest 
12-month increase recorded since the index was first published in December 2003. 
    
   The price index for imports from Japan edged up 0.2 percent in April and advanced 1.0 percent 
over the past year.
   
Import and Export Services

   Import air passenger fares rose 9.1 percent in April after advancing 0.2 percent in March.  A 17.3 
percent increase in fares from Europe was the largest contributor to the overall increase, although prices 
also rose for Latin America-Caribbean and Asian fares.  The price index for overall fares increased 12.6 
percent for the year ended in April.  In contrast, export air passenger fares decreased 5.0 percent in April 
following a 2.4 percent increase in March.  The April decline was led by lower Asian fares.  Over the 
past year, the index rose 3.3 percent.
	
   The price index for import air freight advanced 4.5 percent in April, driven by a 9.6 percent 
increase in European air freight prices.  Import air freight prices increased 15.1 percent for the year 
ended in April.  Export air freight prices rose 2.4 percent in April after falling 0.2 percent the previous 
month.  The index advanced 14.7 percent over the past year.  

CONTENTS OF RELEASE

This news release includes the following tables:

Table 1    U.S. Import Price Indexes, by End Use
Table 2    U.S. Export Price Indexes, by End Use
Table 3    U.S. Import Price Indexes, by NAICS
Table 4    U.S. Export Price Indexes, by NAICS
Table 5    U.S. Import Price Indexes, by Harmonized System
Table 6    U.S. Export Price Indexes, by Harmonized System
Table 7    U.S. Import Price Indexes, by Locality of Origin
Table 8    U.S. International Price Indexes for Selected Transportation Services
-------------------------------------------------------------------
Import and Export Price Index data for May are scheduled for release on June 12 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 for merchandise goods 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 -- The Import Air Passenger Fares Indexes are calculated from data obtained 
from a commercial airline reservation system.  These data exclude frequent flyer tickets and those sold 
by consolidators.  The Export Air Passenger Fares Indexes are calculated from data collected directly 
from airlines.  These data include frequent flyer tickets and those sold by consolidators.  Taxes and fees 
are excluded from both the Import and Export Air Passenger Fares Indexes.  The Air Freight Indexes are 
calculated from data collected directly from companies.  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 "Publications and Other Documentation."

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 IPP news release is available through an e-mail subscription service at 
(http://www.bls.gov/mxp) or (http://www.bls.gov/bls/newsrels.htm).
 
Additional Information -- More detailed IPP data are available on the IPP 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 IPP-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 IPP 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.