Date: November 18, 2021
Import prices increased 1.2 percent in October, following a 0.4-percent gain in the previous month. The increase was led by higher prices for petroleum and non-fuel commodities. Prices for U.S. exports climbed 1.5 percent in October, after increasing 0.4 percent in September and 0.3 percent in August.
Imports
Import prices rose 1.2 percent in October, the highest monthly since a 1.3 percent increase in May. The period, June- September, prices advanced 0.5%. Between October 2020 to October 2021, the prices for U.S. imports have increased 10.7 percent.
Fuel Imports: Import fuel prices rose 8.6 percent in October following a 3.9-percent increase the previous month. In October, higher petroleum and natural gas prices contributed to the rise. Petroleum prices climbed 8.1 percent in October, the greatest monthly increase since March 2021. Prices for natural gas also rose in October, increasing 19.7 percent, after a 6.5-percent rise in September. The October increase was the largest 1-month rise since the index increased 44.2 percent in November 2020. The price index for import fuel climbed 86.7 percent over the past year. Both an 86.1-percent rise in petroleum prices and a 134.0-percent climb in natural gas prices factored into the 12-month increase in import fuel prices in October.
All Imports Excluding Fuel: Prices for nonfuel imports climbed 0.4 percent in October, after a 0.1- percent increase in September and no change in August and July. In October, higher prices for nonfuel industrial supplies and materials; automotive vehicles; foods, feeds, and beverages; and consumer goods contributed to the climb in nonfuel import prices. The price index for nonfuel imports rose 5.5 percent from October 2020 to October 2021.
Foods, Feeds, and Beverages: Foods, feeds, and beverages prices climbed 0.8 percent in October following a 1.4-percent rise the previous month. The October increase was led by a 5.6-percent increase in meat prices and a 1.1-percent rise in fish and shellfish prices, which more than offset lower fruit prices.
Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices increased 0.9 percent in October, after a 3.2-percent downturn from June to September. The October rise was primarily driven by a 6.8-percent increase in selected building material prices and a 2.8-percent climb in chemical prices.
Finished Goods: Prices for the major finished goods categories were significantly up in October. The price index for automotive vehicles rose 0.7 percent, the biggest monthly advance since a 0.7-percent increase in April 2012. Consumer goods prices went up 0.1 percent following a 0.4-percent rise in September. Higher prices for household and kitchen appliances; furniture; and toiletries and cosmetics all contributed to the October advance. Prices for capital goods were unchanged in October.
U.S. export prices climbed 1.5 percent in October, the largest 1-month increase since a 2.3-percent increase in May 2021. In October, higher prices for both agricultural exports and nonagricultural exports contributed to the overall advance. The price index for U.S. exports rose 18.0 percent over the past year, the largest 12- month increase since the series was first published in September 1983.
Agricultural Exports: Prices for agricultural exports rose 1.0 percent in October, after falling 1.5 percent in September. In October, higher wheat prices, other animal feeds, cotton, meat, and dairy products more than offset lower soybean prices. Agricultural export prices rose 24.5 percent from October 2020 to October 2021.
All Exports Excluding Agriculture: The price index for nonagricultural exports increased 1.5 percent in October following a 0.6-percent climb the previous month. Nonagricultural export prices have not recorded a 1-month fall since October 2020. In October, higher prices for nonagricultural industrial supplies and materials; capital goods; automotive vehicles; consumer goods; and nonagricultural foods all contributed to the rise in nonagricultural export prices. Prices for nonagricultural exports increased 17.2 percent over the past year, the largest 12-month increase since the series was first published in March 1985.
Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices rose 3.3 percent in October, after climbing 1.4 percent in September. The increase in October was driven by a 7.0-percent rise in export fuel prices.
Finished Goods: Prices for each of the major finished goods categories increased in October. Capital goods prices climbed 0.2 percent for the second consecutive month and have not recorded a monthly fall since November 2020. In October, higher prices for industrial and service machinery and electrical generating equipment more than offset lower prices for computers, peripherals, and semiconductors. Prices for automotive vehicles increased 0.3 percent in October led by a 0.8-percent climb in prices for vehicles designed to transport goods. The price index for consumer goods rose 0.2 percent following a 0.7-percent fall from June to September.
Measures of Import and Export Prices by Locality
Imports by Locality of Origin: Import prices from China climbed 0.2 percent for the third consecutive month in October following a 0.7-percent increase in July. The price index for imports from China rose 4.2 percent for the year ended in October, the largest 12-month rise since the index increased 4.3 percent from October 2007 to October 2008. Import prices from Japan were unchanged in October and rose 2.0 percent over the past year. The price index for imports from Canada climbed 4.7 percent in October, the largest 1-month increase since May. Prices for imports from Canada advanced 30.1 percent over the past 12 months. Import prices from Mexico also increased in October, climbing 0.7 percent, after rising 0.8 percent in September and 0.7 percent in August. In contrast, the price index for imports from the European Union fell 0.2 percent following 0.1-percent rises in each of the 2 previous months.
Exports by Locality of Destination: Prices for exports to China climbed 0.7 percent in October, after falling 0.4 percent in September. The October rise was the largest monthly advance since June. The price index for exports to China rose 13.6 percent over the past year. Export prices to Japan rose 1.0 percent in October following a 0.8-percent increase the previous month. Prices for exports to Japan rose 13.8 percent for the year ended in October. The October price index for exports to Canada rose 1.4 percent following a 1.1-percent increase in September. Prices for exports to Mexico rose 2.1 percent in October, after climbing 1.1 percent the previous month. Export prices to the European Union rose 1.6 percent in October, the largest monthly increase for the index since a 1.7-percent climb in June 2020.
Terms of Trade Indexes: Terms of trade indexes are based on country, region, or grouping and measure the change in the purchasing power of exports relative to imports. U.S. terms of trade with China increased 0.5 percent in October, after falling 0.6 percent the previous month. In October, higher export prices to China more than offset rising import prices from China. The index for U.S. terms of trade with China rose 9.0 percent from October 2020 to October 2021. U.S. terms of trade with Japan increased 1.0 percent in October following a 0.7-percent rise in September. In contrast, the index for U.S. terms of trade with Canada declined 3.2 percent in October, after climbing 8.1 percent from June to September. U.S. terms of trade with Canada declined 11.4 percent over the past year. In October, U.S. terms of trade with Mexico increased 1.5 percent and U.S. terms of trade with the European Union rose 1.9 percent.
Import and Export Services
Imports: Import air passenger fares declined 1.4 percent in October, after rising 4.7 percent in September and falling 6.0 percent in August. Import air passenger fares rose 9.3 percent over the past 12 months, the smallest over-the-year increase since April. The price index for import air freight increased 1.9 percent in October following a 4.8-percent climb in September. Both monthly advances were driven by higher prices for Asian import air freight. Overall import air freight prices increased 27.6 percent over the past year.
Exports: Export air passenger fares declined 2.3 percent in October, after decreasing 8.8 percent the previous month. In October, lower prices for Asian, Latin American/Caribbean, and European fares all contributed to the drop. Despite the recent decreases, export air passenger fares increased 12.4 percent for the year ended in October. Export air freight prices increased 1.5 percent in October following a 0.8-percent increase the previous month. Higher Asian and European air freight prices both contributed to the October rise. Prices for export air freight rose 13.5 percent over the past 12 months, the largest over-the-year advance since the index rose 15.0 percent in October 2011.
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