US Import and Export Prices Index

The U.S. Bureau of Labor Statistics has reported that after a 0.4%  increase in September, the U.S. imports prices has increased by 1.2 percent in October 2021. The October price has been increased due to higher fuel and non-fuel prices. After rising by 0.4 percent in September, and 0.3 percent respectively in August, prices for U.S. exported goods rose 1.5 percent in October.

Imports

The import export data shows that the price index (for the month of October) for U.S. imported goods increased by 1.2 percent. This is the largest monthly increase since May’s which was 1.3 percent increase. Prior to October, Import prices rose 0.5 percent between June and September. The largest increase in import prices since June 2021 was 10.7 percent, the data was collected from October 2020 to October 2021.

Import Fuel

After a 3.9 percent increase in the September fuel imports, prices for imported fuel rose 8.6 percent in October. The increase was due to higher prices of petroleum and natural gas in the month of October. Oil prices has been increased by 8.1% in October, which was the largest monthly rise since March 2021. Natural gas prices also rose in October and touched the new heights of 19.7 percent which was earlier 6.54 percent in September. In October, the index grow by 44.2 percent which was the largest since November 2020. Over the past year, the price index for import fuel grew 86.7 percent. The October rise in import fuel prices was due to a combination of an 86.1 percent increase in petroleum prices and a 134.0% increase in natural gas prices.

All Imports Except Fuel

The prices for non-fuel imports rose 0.4 percent in October after a 0.1 percent increase. There was no change in August or July but it was increased in September. The rise in import prices for non-fuel and fuels was mainly due to increased costs of industrial supplies and materials, automotive vehicles, foods, feeds and beverages, as well as consumer goods. According to the data, the price index for non-fuel imports has increased by 5.5 percent from October 2020 to Oct 2021.

Beverages, Foods and Feeds

October saw a 0.8 percent increase in food, feeds and beverages prices. In previous month it was 1.4 percent increase. The data shows a 5.6 percent rise in meat prices, and a 1.1 percent increase in fish-and-shellfish prices. Fruit industry also follows the same trend with a lower increase in prices.

Non-fuel Industrial Supplies and Material

Prices for non-fuel industrial supplies and material rose 0.9 percent in Oct, following a 3.2 percent decline from June to September. The higher prices of building material and chemical prices also affected price increase. Market noted 2.8 percent increase in chemical prices and 6.5 percent increase in prices of selected building materials.

Finished Goods

Prices of the main categories of finished goods were generally up in October. Automobile industry also saw increase of 0.7 percent in vehicles. This is the largest monthly increase since April 2012. After a September increase of 0.4 percent, consumer goods prices rose 0.1 percent. The October increase was due to higher prices for kitchen and household appliances, furniture, and toiletries. The prices for the capital goods remained unchanged in October.

Exports

According US trade data, exported prices rose 1.5 percent in October. This is the largest one-month increase since May 2021. The overall increase was due to higher prices for both agricultural and non-agricultural exports in October. The U.S. price index for exports grew 18.0 percent in the past 12 months, which is the largest increase since September 1983 when the series began.

Agricultural Exports

After falling 1.5 percent in September, agricultural export prices increased by 1.0 percent in October. Higher prices for wheat, milk, meat and other animal feeds in October was more than compensated due to lower prices of soybean. From October 2020 to October 2021, agricultural export prices rose 24.5 percent.

All exports excluding agriculture

The price index of non-agricultural exports increased 1.5 percent in October. It was 0.6 percent higher than the previous month. Yet, export prices for non-agricultural commodities have not increased. The increase in non-agricultural export prices was largely due to higher prices for non-agricultural supplies and materials, capital goods, automotive vehicles, consumer goods and non-agricultural food. The prices for non-agricultural exports increased 17.2 percent, which is the largest 12-month rise since March 1985 when the series began.

Non-agricultural Industrial Supplies & Materials

Prices for non-agricultural industrial materials and supplies increased by 3.3 percent in October after rising 1.4 percent in September. Export fuel prices increased by 7.0 percent in October, causing the October increase.

Finished Goods

Prices of all major categories of finished goods increased in October. Prices for capital goods rose 0.2% for the second month in a row and have not seen a monthly drop since November 2020. Higher prices for industrial and electrical machinery, as well as for electrical generating equipment, were more significant than lower prices for semiconductors, computers, peripherals and other electronic devices in October. The October increase in the prices of automobile vehicles was 0.3 percent. This was due to a 0.8 percent rise in the prices of vehicles used for transporting goods. After a decline of 0.7 percent in June and September, the price index for consumer goods rose by 0.2 percent.