The U.S. Import Price Index increased 0.9 percent in January, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The increase followed a 1.4 percent decline in December and was attributable to higher prices for both petroleum and nonpetroleum imports. Export prices increased 0.7 percent in January after advancing 0.2 percent in December.
Import Goods
Import prices rose 0.9 percent in January after declining in December and November. Petroleum prices, the main contributor to the declines in the previous two months, led the overall increase in import prices in January. The price index for import petroleum rose 4.6 percent in January after falling 16.8 percent over the prior two months. For the year ended in January, petroleum prices were up 26.9 percent. Nonpetroleum import prices increased for the third consecutive month, rising 0.2 percent in January after increasing 0.4 percent in December and 0.9 percent in November. Over the past 12 months, prices for nonpetroleum imports increased 3.0 percent, while overall import prices advanced 6.0 percent.Rising prices for consumer goods, for capital goods, and for nonpetroleum industrial supplies and materials all contributed to the modest January increase in nonpetroleum prices. The price index for import consumer goods rose 0.4 percent, the largest increase for the index since January 2004. The increase in consumer goods prices, which were up 0.8 percent over the past year, was led by higher prices for medicinal and pharmaceutical products. Capital goods prices rose for the third consecutive month, advancing 0.2 percent in January. Despite the recent upturn, the price index for capital goods declined 0.8 percent over the past 12 months. Prices for nonpetroleum industrial supplies and materials edged up 0.1 percent last month and increased 13.1 percent for the year ended in January.
In contrast, the price indexes for automotive vehicles, parts, and engines and for foods, feeds, and beverages recorded modest decreases in January. Prices for automotive vehicles fell for the first time since September 2003, declining 0.1 percent in January. The foods, feeds, and beverages index dipped 0.2 percent in January following increases in each of the previous four months. Prices for foods, feeds and beverages increased 6.9 percent over the past 12 months.
Export Goods
Export prices rose 0.7 percent in January, with both agricultural and nonagricultural prices contributing to the increase. The price index for agricultural exports advanced 0.3 percent in January, led by higher prices for both soybeans and corn. Despite the increase, agricultural prices decreased 6.2 percent over the past 12 months. Prices for nonagricultural exports increased 0.7 percent last month and were up 5.1 percent for the year ended in January. Overall export prices rose 4.0 percent over the same period and have increased for five consecutive months.Prices for nonagricultural industrial supplies and materials continued to trend upward in January, increasing 1.5 percent. Higher fuel and chemical prices led the January rise in the price index for this area, which rose 15.5 percent for the January 2004-2005 period.
Increasing prices for each of the major finished goods areas also contributed to the January increase in nonagricultural export prices. Prices for both capital goods and for automotive vehicles rose 0.3 percent in January, the fourth consecutive increase for each index. Over the past 12 months, capital goods prices increased 1.0 percent and prices for automotive vehicles advanced 1.3 percent. The price index for export consumer goods increased 0.6 percent last month, the largest monthly increase for the index since 1992. Higher prices for durable goods and for medicinal and pharmaceutical products led the increase. Export consumer goods prices advanced 1.6 percent for the year ended in January.
