All Imports: Import prices ticked up 0.2 percent in May after rising more than 1.0 percent in each of the previous seven months. The May advance was led by higher nonfuel prices. In contrast, fuel prices declined for the month. Prices for overall imports advanced 12.5 percent over the past year, the largest 12-month month increase since the index rose 13.1 percent between September 2007 and September 2008.
Fuel Imports: Prices for fuel decreased 0.2 percent in May, the first monthly decline for the index since a 1.5 percent drop in September 2010. In May, a 0.4 percent drop in petroleum prices more than offset a 4.1 percent increase in natural gas prices. Despite the May decrease, fuel prices advanced 42.3 percent over the past 12 months, the largest year-over-year rise since the index increased 54.4 percent for the year ended April 2010. Both petroleum and natural gas prices rose for the May 2010-11 period, advancing 44.6 percent and 8.8 percent, respectively.
All Imports Excluding Fuel: The price index for nonfuel imports continued to rise in May, although the 0.4 percent increase was the smallest monthly advance since a 0.3 percent gain in December 2010. Since August 2010, the index has risen between 0.3 percent and 0.8 percent on a monthly basis. Higher nonfuel industrial supplies and materials prices and finished goods prices drove the May advance, while foods, feeds, and beverages prices decreased for the month. Overall, nonfuel import prices rose 4.4 percent on a 12-month basis.
Exports
All Exports: Export prices increased 0.2 percent in May, the smallest monthly advance since the index declined 0.2 percent in July 2010. In May, agricultural prices fell for the first time since July 2010, but were more than offset by a continued upward trend in nonagricultural prices. The price index for overall exports rose 9.0 percent for the year ended in May.
Agricultural Exports: Agricultural export prices fell 2.0 percent in May, breaking a nine-month trend of rising prices. The decline is the largest monthly drop in agricultural prices since a 4.0 percent decrease in February 2010. A 17.1 percent drop in cotton prices led the May decline, although prices for soybeans, corn, and wheat, fell 1.5 percent, 1.1 percent, and 2.0 percent, respectively. Despite the May drop, agricultural prices increased 30.1 percent over the past year, driven by higher prices for corn, cotton, wheat, and soybeans over that period.
All Exports Excluding Agriculture: Nonagricultural prices continued to rise in May, increasing 0.5 percent. Rising prices for nonagricultural industrial supplies and materials and most finished goods contributed to the advance. The price index for nonagricultural prices has not recorded a decline since July 2010, and increased 7.0 percent over the past 12 months.
SELECTED MAY HIGHLIGHTS
Import Prices
Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices increased 1.4 percent in May after rising a similar 1.5 percent the previous month. The May advance was attributable to a 3.1 percent rise in unfinished metals prices led by continued higher prices for gold and other precious metals. Rising chemicals prices, up 1.5 percent in May following a 2.1 percent increase in April, also contributed to the advance.
Finished Goods: Each of the three major finished goods areas rose for the second consecutive month in May. Consumer goods prices increased 0.3 percent in May, driven primarily by a 0.7 percent rise in the price index for cotton apparel and household goods. Automotive vehicles prices advanced 0.5 percent, led by higher prices for automotive parts. Capital goods prices also rose in May, increasing 0.2 percent.
Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages fell 0.5 percent in May, the first monthly decline for the index since a 1.6 percent decrease in June 2010. The May decline was led by a 9.4 percent drop in vegetable prices.
Imports by Locality of Origin: Import prices from China continued to rise in May, advancing 0.3 percent after rising 0.6 percent in March and 0.4 percent in April. Prices for imports from China rose 2.8 percent on a 12-month basis for the second consecutive month, the largest year-over-year increases since rising 2.8 percent for the December 2007-08 period. The price indexes for imports from the European Union and Canada also rose in May, advancing 0.8 percent and 0.5 percent, respectively. In contrast, import prices from Mexico fell 0.7 percent. Prices for imports from Japan were unchanged in May.
Transportation Services: The index for import air passenger fares increased 5.6 percent in May, and was led by higher European and Asian fares. Import air passenger fares advanced 7.3 percent for the year ended in May. Prices for import air freight rose 2.9 percent in May and 9.8 percent over the past 12 months.
Export Prices
Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies and materials advanced 1.0 percent in May following a 2.1 percent rise in April. The increase was led by a 2.1 percent advance in nonferrous metals prices and a 2.2 percent rise in chemical prices. Fuel prices, which advanced 34.0 percent over the past year, only rose 0.6 percent in May.
Finished Goods: Prices for finished goods were mostly up in May, with capital goods prices rising 0.4 percent and prices for automotive vehicles advancing 0.2 percent. The increase in capital goods prices was led by a 1.8 percent rise in electrical generating equipment. In contrast, consumer goods prices edged down 0.1 percent.
Transportation Services: Export air passenger fares advanced 2.5 percent in May, following a 7.1 percent increase in March and a 1.6 percent gain in April. In May, higher Asian and European fares more than offset declining Latin American/Caribbean fares. The index for export air passenger fares rose 10.0 percent for the year ended in May. Export air freight prices increased 3.6 percent in May and 19.0 percent over the past year.
