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

   The U.S. Import Price Index decreased 3.0 percent in September, the Bureau of Labor Statistics 
of the U.S. Department of Labor reported today, following a 2.6 percent decline in August.  Falling 
petroleum prices led the overall decrease, although nonpetroleum prices also declined.  Prices for overall 
exports decreased 1.0 percent for the month.

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

Import Goods
   
   Import prices fell 3.0 percent in September, the largest one-month decline since April 2003.  
Despite the 5.5 percent drop over August and September, the largest two-month decline since the index 
was first published monthly in December 1988; import prices were still up 14.5 percent over the past 
year.  The September decrease in import prices was led by a 9.0 percent decline in petroleum prices, the 
largest monthly drop since October 2006.  The September decline in petroleum prices followed an 8.2 
percent decrease in August; however, the index still rose 47.1 percent over the past 12 months.  
Nonpetroleum import prices also fell in September, declining 0.9 percent after a 0.5 percent drop in 
August.  Prices for nonpetroleum imports rose 6.5 percent for the year ended in September.        
   
   The September decrease in nonpetroleum prices was driven by a 2.9 percent drop in the price 
index for nonpetroleum industrial supplies and materials.  Falling prices for natural gas and metals drove 
the decline.  A 1.7 percent decrease in the foods, feeds, and beverages index largely resulted from lower 
prices for food oils, meat, and fish.  

   Prices for each of the major finished goods categories also fell in September.  The price indexes 
for capital goods, automotive vehicles, and consumer goods each decreased 0.1 percent.  The decrease in 
capital goods prices was led by computer prices, which continued to trend down in September.  The fall 
in computer prices more than offset a 0.2 percent advance in capital goods prices excluding computers.  
The downturn in prices for automotive vehicles was the first decrease since the index fell 0.2 percent in 
January 2006.  Similarly, consumer goods prices decreased for the first time since April 2006. 

 
Export Goods 

   Export prices decreased 1.0 percent in September following a 1.7 percent decline in August.  The 
September decline was led by a 1.0 percent drop in nonagricultural prices, although agricultural prices 
also fell, decreasing 0.3 percent.  Despite the 2.7 percent downturn over August and September, the 
largest two-month decline since the index was first published monthly in December 1988; export prices 
were still up 6.8 percent for the year ended in September.  The decline in nonagricultural prices in 
September followed a 0.7 percent drop in August, and was the largest one-month drop since the index 
was first published monthly in December 1988.  Nonagricultural prices rose 5.6 percent for the 
September 2007-2008 period.  
   
   The September decline in nonagricultural prices was led by a 2.7 percent drop in the price index 
for nonagricultural industrial supplies and materials.  Lower prices for gold, precious metals, and fuel oil 
led the decline.
   
   Prices for capital goods and consumer goods also decreased in September, falling 0.1 percent and 
0.3 percent, respectively.  Excluding a 0.8 percent decrease in computer prices, capital goods prices 
advanced 0.1 percent in September.  In contrast, the price index for automotive vehicles ticked up 0.1 
percent.
   
   The modest decline in agricultural prices was led by lower prices for soybeans, fruit, and 
vegetables, which more than offset increasing corn and wheat prices.  The September decrease in 
agricultural prices followed a 9.6 percent decline in August.  The index advanced 19.5 percent over the 
past twelve months.        

Imports by Locality of Origin 
	
   Lower fuel prices in September drove the declines in import prices from Canada, Mexico, and 
the European Union for the second consecutive month.  Import prices from Canada fell 4.9 percent, the 
largest one-month drop since the index was first published monthly in September 1992.  Prices for 
imports from Mexico declined 1.7 percent, and import prices from the European Union fell 1.3 percent.  
Despite the decreases over the past two months, prices for imports from Canada, Mexico, and the 
European Union rose 19.8 percent, 16.3 percent, and 7.8 percent, respectively, over the past year.
   
   Prices for imports from Japan also declined in September, falling 0.6 percent, which was the first 
monthly downturn for the index since November 2007 and the largest one-month drop since January 
2006.  The index rose 1.1 percent over the past year.
   
   In contrast, import prices from China continued to rise in September, ticking up 0.1 percent for 
the second consecutive month after rising 3.2 percent from February to July.  Import prices from China 
increased 4.8 percent for the year ended in September.    
   
Import and Export Services

   Import air passenger fares decreased 6.9 percent in September after falling 3.0 percent in August.  
The September decline was led by a 10.1 percent seasonal decrease in European fares.  The index for 
import air passenger fares increased 15.0 percent for the September 2007-2008 period.  Export air 
passenger fares fell 8.7 percent in September.  The decrease was driven by a 10.9 percent seasonal drop 
in European fares.  Over the past 12 months, the index increased 13.1 percent.

   The price index for import air freight decreased 3.4 percent in September, led by an 8.1 percent 
decline in European air freight prices.  The September drop in overall import air freight prices followed a 
0.2 percent decrease the previous month.  Export air freight prices fell 1.4 percent in September after 
advancing 3.6 percent in August.  Import air freight prices rose 16.8 percent over the past 12 months 
while export air freight prices advanced 22.0 percent over the same period.  
   	
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
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Import and Export Price Index data for October are scheduled for release on November 14 at 
8:30 A.M. (EST)