Import, Export Prices Reverse Course in April Following March Gains

U.S. import prices fell 0.4 percent in April following a 0.4-percent advance the previous month, the U.S. Bureau of Labor Statistics reported today. Declining fuel prices drove the April decrease. U.S. export prices decreased 1.0 percent in April, after rising 1.0 percent in March.

Imports

All Imports: Import prices declined 0.4 percent in April, after increasing 1.8 percent in the first quarter of 2014. The April drop was the first monthly decrease since the index fell 0.9 percent in November 2013. Import prices also fell 0.3 percent over the past 12 months and have not recorded a year-over-year advance since the index increased 0.9 percent from July 2012 to July 2013.

Fuel Imports: Fuel prices declined 1.7 percent in April, the first decrease for the index since a 4.2-percent drop in November 2013. Falling prices for both petroleum and natural gas contributed to the April drop in import prices. Overall fuel prices advanced 1.3 percent for the year ended in April driven by rising prices for both petroleum and natural gas. Petroleum prices declined 0.7 percent in April following a 5.5 percent increase over the previous 3 months. Prices for petroleum ticked up 0.1 percent over the past year, the first overall advance since a 1.1-percent rise for the year ended in September 2013. The price index for natural gas fell 18.5 percent in April following a 6-month period between September 2013 and March 2014 when the index jumped 157.8 percent. Despite the downturn in April, natural gas prices increased 41.1 percent over the past 12 months.

All Imports Excluding Fuel: The price index for nonfuel imports recorded no change in April, after rising 0.3 percent in March. Prices for nonfuel imports decreased 0.7 percent over the past year led by lower prices for nonfuel industrial supplies and materials, automotive vehicles, and capital goods. The price indexes for foods, feeds, and beverages and consumer goods rose between April 2013 and April 2014, up 4.2 percent and 0.2 percent, respectively.

Exports

All Exports: Export prices fell 1.0 percent in April, after rising in each of the previous 5 months. The April decrease was the largest monthly decline since the index fell 1.7 percent in June 2012, and was led by lower nonagricultural prices which more than offset rising agricultural prices. The price index for overall exports increased 0.1 percent for the year ended in April following a 0.4-percent year-over-year rise the previous month.

Agricultural Exports: Prices for agricultural exports increased 1.4 percent in April following a 2.8-percent rise in March. A 6.0-percent advance in meat prices drove the increase in agricultural prices, although higher prices for soybeans, wheat, and corn also contributed to the overall advance. The price index for agricultural exports increased 2.1 percent over the past 12 months led by higher fruit, meat, and soybeans prices.

All Exports Excluding Agriculture: The price index for nonagricultural exports fell 1.2 percent in April, after rising in each of the previous 5 months. The decrease was driven by a 3.6-percent drop in nonagricultural industrial supplies and materials prices which more than offset rising prices for each of the major finished goods categories. Overall nonagricultural export prices fell 0.1 percent between April 2013 and April 2014, driven by lower prices for nonagricultural industrial supplies and materials and consumer goods.

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