U.S. Import and Export Price Indices for November, 2006

The U.S. Department of Labor's Bureau of Labor Statistics this morning released the price indices for U.S. imports and exports for November, 2006 :

Import Prices
Predicted: 0.0
Actual: +0.2%

Export Prices
Actual: +0.4%

The above percentages represent the month-to-month change in prices for

• Imports: the cost of goods produced in other countries and sold in the U.S.
  
  
• Exports: the cost of goods produced in the U.S. and sold in other countries.
  

Together, these indices offer insight into the status of inflation in the United States, and for the global economy as well. The "predicted" figure is what economists and Wall Street forecasters were expecting, while the "actual" is the true or real figure.

The following is a clip from today's Labor Department report:

"Import Goods

Import prices rose 0.2 percent in November following the petroleum-driven declines of 2.3 percent and 2.2 percent in October and September, respectively. The index for overall imports increased 1.2 percent over the past 12 months. Petroleum prices fell a more modest 1.6 percent in November compared to the double-digit declines recorded in the prior two months. Despite the recent downturn, petroleum prices advanced 1.5 percent for the year ended in November. Nonpetroleum prices resumed an upward trend in November, following a 0.5 percent decline in October, rising 0.7 percent for the month and 1.3 percent over the past year.

A 2.9 percent increase in the price index for nonpetroleum industrial supplies and materials was the largest contributor to the higher nonpetroleum prices in November. That increase was largely attributable to a sharp upturn in natural gas prices. Excluding all fuels, import prices rose a modest 0.1 percent. The November increase in nonpetroleum industrial supplies and materials prices followed a 2.7 percent downturn in October that was caused in part by a large decline in natural gas prices. Foods, feeds, and beverages prices also advanced in November, rising 0.4 percent. Prices for foods, feeds, and beverages increased 5.0 percent for the November 2005-2006 period.

In contrast, prices for each of the major finished goods areas were unchanged in November. Capital goods prices have remained unchanged since a 0.1 percent up-tick in July and rose a modest 0.2 percent overall for the year ended in November. The price indexes for consumer goods and automotive vehicles were also up over the past 12 months, rising 1.1 percent and 0.7 percent, respectively.


Export Goods

Prices for exports increased 0.4 percent in November after falling 0.3 percent in October and 0.4 percent in September. The November increase resumed a year-long upward trend for the index, which advanced 3.9 percent over the past 12 months. A 4.4 percent increase in agricultural prices led the November advance and was the largest one-month gain for that index since prices of agricultural exports rose 5.4 percent in September 2003. The November increase in agricultural prices was led by higher prices for corn, soybeans, and wheat. The agricultural exports price index advanced 10.4 percent for the year ended in November. Nonagricultural prices also increased in November, rising 0.1 percent after decreasing 0.5 percent and 0.4 percent in October and September, respectively. Despite those declines, the index rose 3.4 percent over the past year.

The price index for nonagricultural industrial supplies and materials rose 0.3 percent in November. Higher prices for metals and fuel were partially offset by falling prices for chemicals. Prices for nonagricultural industrial supplies and materials increased 8.4 percent over the past 12 months. A 0.1 percent rise in capital goods prices also contributed to the increase in nonagricultural prices. The November increase followed a 0.2 percent advance in each of the prior two months and the index rose 1.2 percent for the November 2005-2006 period.

In contrast, automotive vehicle prices edged down 0.1 percent in November, the first decrease for the index since a 0.1 percent dip in December 2005. Despite the downturn, prices for automotive vehicles increased 1.2 percent for the year ended in November.

Consumer goods prices were unchanged in November and up 2.0 percent over the past 12 months."

Click here to view the full Labor Department report.

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