The U.S. Import Price Index rose 0.8 percent in February, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase was led by an advance in petroleum prices and followed a 0.7 percent rise in January. Export prices were unchanged in February after rising 0.9 percent the previous month.
Import Goods
Overall, import prices jumped for the second consecutive month in February, led again by rising petroleum prices. After declining 16.8 percent over the final two months of 2004, petroleum prices have resumed a nearly two- year upward trend, rising 3.9 percent in February and 3.4 percent in January. Import petroleum prices were up 29.6 percent for the year ended in February. In addition, nonpetroleum import prices increased for the fourth consecutive month, rising 0.2 percent in February after increasing 1.6 percent over the three previous months. Over the past year, prices of nonpetroleum imports rose 2.9 percent, while overall import prices advanced 6.1 percent.Higher prices for foods, feeds, and beverages; for consumer goods; and for nonpetroleum industrial supplies and materials contributed to the February increase in nonpetroleum prices. The price index for foods, feeds, and beverages advanced 1.3 percent in February and 7.3 percent over the past 12 months. Consumer goods prices rose for the fifth consecutive month, rising 0.2 percent in February after increasing 0.5 percent in January. Prices for nonpetroleum industrial supplies and materials rose 0.3 percent for the second consecutive month. The increases continued the upward trend for the index over the past two years, albeit at a slower rate than that recorded over most of that period. The index advanced 11.3 percent for the year ended in February.
In contrast, the price indexes for capital goods and for automotive vehicles were both unchanged in February. Capital goods prices had been up in each of the previous three months, rising 0.8 percent over that period, the largest three-month change in almost ten years. Despite those increases, capital goods prices decreased 0.6 percent over the past 12 months. Automotive vehicle prices rose 1.5 percent over the same period.
Export Goods
Export prices were unchanged in February as decreasing agricultural prices were offset by a modest increase in nonagricultural prices. The price index for agricultural exports declined 0.9 percent in February, following a 0.6 percent increase in January. Lower prices for soybeans, corn, and fruit contributed to the February drop. Prices for agricultural exports decreased 8.2 percent over the past year. Nonagricultural prices continued to trend upward, although the 0.1 percent rise in February was the smallest monthly increase since the index last declined in June. For the February 2004-2005 period, nonagricultural export prices rose 4.7 percent while overall export prices were up 3.4 percent.The uptick in nonagricultural prices was led by a modest 0.2 percent increase in the price index for nonagricultural industrial supplies and materials. Rising fuel prices more than offset lower prices for chemicals and metals. Nonagricultural industrial supplies and materials prices increased 14.4 percent over the past 12 months.
Each of the major finished goods areas either recorded no change or declined in February. Consumer goods prices decreased 0.1 percent after increasing 0.9 percent over the previous three months. Overall, prices of consumer goods rose 1.6 percent for the year ended in February. The price indexes for capital goods and for automotive vehicles were both unchanged in February. Prices for both capital goods and for automotive vehicles had posted increases in each of the four months prior to February and advanced 0.8 percent and 1.2 percent, respectively, over the past year.
