Import Goods
Import prices fell 1.3 percent in December, the largest monthly decline for the index since April 2003. Despite the December decrease, import prices were up 6.9 percent over the past year compared with a more modest 2.4 percent increase for the year ended in December 2003. The December drop in overall import prices was led by lower petroleum prices, which fell 11.5 percent in December and 5.7 percent in November following sharp increases over much of 2004. For the year ended in December, petroleum prices were up 30.8 percent after increasing 12.8 percent over the previous 12-month period. In contrast to petroleum prices, the index for nonpetroleum import prices was up 0.5 percent in December. For the December 2003-2004 period, the index rose 3.8 percent following a 1.2 percent increase over the previous year.Higher prices for each of the major goods categories contributed to the December increase in nonpetroleum import prices. The price index for nonpetroleum industrial supplies and materials had the largest impact, up 1.3 percent in December and led primarily by higher prices for building materials and metals. Nonpetroleum industrial supplies and materials prices trended upward throughout 2004, increasing 17.1 percent for the year ended in December.
The price indexes for consumer goods and for capital goods were each up 0.3 percent in December. The advance in consumer goods prices was the largest monthly gain since January, while the rise in capital goods prices was the largest monthly advance since November 2003. For the year ended in December, prices of consumer goods rose 0.7 percent, whereas capital goods prices were down 0.9 percent. Prices for automotive vehicles were up 0.2 percent in December and 2.1 percent over the past year. Prices for foods, feeds, and beverages also increased in December, up 1.0 percent for the month and 7.8 percent over the past 12 months.
Export Goods
Export prices rose 0.2 percent in December as both agricultural and nonagricultural prices increased. The price index for overall exports grew over much of the past 12 months and was up 4.1 percent for that period following a 2.2 percent increase from December 2002-2003. Agricultural prices were up in December, rising 0.2 percent for the second consecutive month. Higher corn prices were somewhat offset by declining prices for export fruit. Despite the recent increases in agricultural prices, the index was down 5.0 percent for the year ended in December, contrasting with a 13.4 percent increase over the previous year. Nonagricultural prices increased 0.1 percent in December, continuing their upward trend over 2004. The index was up 4.9 percent over the past year after rising 1.3 percent for the year ended in December 2003.The December rise in nonagricultural prices was led by increases in each of the major finished goods categories. The price index for consumer goods rose 0.3 percent in December, the largest gain for the index since July. Consumer goods prices were up 1.5 percent over the December 2003-2004 period. December prices for capital goods and for automotive vehicles each rose 0.1 percent, the third consecutive monthly increase for both indexes. For the year ended in December, capital goods prices were up 0.7 percent while prices for automotive vehicles increased 1.1 percent.
Prices for nonagricultural industrial supplies and materials were unchanged in December as falling fuel prices offset continued price increases for chemicals and metals. Nonagricultural industrial supplies and materials prices trended up over much of the past year and increased 16.2 percent overall in 2004.
