The U.S. Import Price Index rose 1.5 percent in October, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. An 11.7 percent increase in import petroleum prices last month more than offset a 0.2 percent decline in the price index for nonpetroleum imports. Export prices were up 0.7 percent in October, following a 0.4 percent rise in September.
Import Goods
Import prices were up 1.5 percent in October, the fourth consecutive monthly advance and largest increase for the index since May. The rise was attributable to an 11.7 percent jump in petroleum prices. The price index for petroleum has trended upward since June 2003, when the index rose 24.8 percent. For the year ended in October, petroleum prices were up 67.6 percent. In contrast, nonpetroleum import prices fell 0.2 percent last month, the first decline for the index since October 2003. Prices for nonpetroleum imports rose 2.7 percent over the October 2003-2004 period. Led by the sharp increase in petroleum prices, overall import prices were up 9.7 percent over the same timeframe.The October decrease in nonpetroleum prices was led by a 1.1 percent decline in the price index for nonpetroleum industrial supplies and materials, a drop attributable to falling prices for lumber and other finished building materials. Despite the decline, nonpetroleum industrial supplies and materials prices increased 12.8 percent over the past 12 months. Import capital goods prices fell 0.2 percent in October, led by falling computer prices. The price index for capital goods has not increased since January and was down 1.3 percent over the past year. A 0.6 percent drop in prices for foods, feeds, and beverages also contributed to the October decline in nonpetroleum prices and resulted from lower vegetable prices. Foods, feeds, and beverages prices were up 6.0 percent for the year ended in October.
Import automotive vehicle prices rose 0.4 percent in October, partially offsetting the declines in other nonpetroleum prices. The increase was the largest since October 2003 and was attributable to year-end model changeovers. Prices for automotive vehicles were up 1.8 percent over the past 12 months. The price index for consumer goods was unchanged last month and was up a modest 0.5 percent for the year ended in October.
