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The Bureau of Labour Statistics of the US Department of Labour said that prices for US exports rose 0.9 per cent in November after a 0.8 per cent increase the previous month. The 2.7 per cent advance in import prices in November followed increases of 1.4 per cent and 0.6 per cent the two previous months.

Over the past 12 months, the price index for petroleum imports was up 53.0 per cent, while overall import prices increased 11.4 per cent, the largest annual advance since the index was first published in September 1982.

Non-petroleum prices 

The Bureau said that while the rise in petroleum prices was the largest contributor to the November increase, non-petroleum prices also advanced, rising 0.7 per cent. The increase in non-petroleum prices in November followed a 0.5 per cent rise in October. Non-petroleum prices advanced 3.0 per cent over the past year.

A 2.7 per cent increase in the price index for non-petroleum industrial supplies and materials was the largest contributor to the overall rise in non-petroleum prices in November.

The increase followed a 1.4 per cent increase in October and was largely attributable to a sharp rise in natural gas prices. Excluding prices for petroleum and natural gas, prices for industrial supplies and materials rose 1.2 per cent. Prices for chemicals, gold and other precious metals contributed to the advance.

Capital goods

Capital goods prices rose 0.2 per cent in November, continuing an upward trend over the past seven months. The increase was led by higher prices for industrial and service machinery as well as computers.

Prices for automotive vehicles and for consumer goods also increased in November. Automotive vehicle prices rose 0.3 per cent for the second consecutive month, while prices for consumer goods ticked up 0.2 per cent after rising 0.1 per cent in each of the previous two months.

The price index for foods, feeds, and beverages fell 0.2 per cent in November, with lower prices for meat and fruit both contributing to the decrease.

Agricultural and non-agricultural

The 0.9 per cent increase in export prices was the largest one-month gain in the index since a 1.0 per cent increase in April 1995. Higher prices for both agricultural and non-agricultural exports contributed to the advance.

Agricultural prices increased 1.4 per cent in November after a 3.8 per cent rise the previous month and advanced 23.0 per cent over the past year.

In November, higher prices for corn and soybeans more than offset lower prices for wheat. Non-agricultural prices increased 0.8 per cent in November after recording a 0.5 per cent rise the previous month.

For the year ended in November, non-agricultural prices rose 4.6 per cent while overall export prices advanced 6.1 per cent, the largest annual advance since July 1995.

The November increase in non-agricultural prices was led by a 2.3 per cent rise in the price index for non-agricultural industrial supplies and materials. The advance followed a 1.1 per cent increase in October. Rising prices for fuel, metals, and chemicals drove the index upward.

Consumer goods 

Each of the major finished goods indexes also recorded advances in November. The price indexes for consumer goods and capital goods rose 0.3 per cent and 0.1 per cent, respectively. Automotive vehicle prices ticked up 0.1 per cent in November, following a 0.2 per cent advance in October.

Prices for imports from China rose for the seventh consecutive month in November, increasing 0.2 per cent. The index had also advanced 0.2 per cent in October and September. Over the past 12 months, the index rose 2.3 per cent after declining 1.3 per cent for the November 2005-2006 period.

Import prices from Canada and from the European Union advanced 4.7 per cent and 0.7 per cent, respectively, in November. Higher fuel prices and a decline in the value of the dollar contributed to the increases. For the year ended in November, prices for imports from Canada rose 12.9 per cent while import prices from the European Union were up 3.3 per cent. 

The price index for imports from Mexico also increased, rising 1.9 per cent in November and 14.2 per cent over the past year. In contrast, the price index for imports from Japan edged down 0.1 per cent in November. Prices for imports from Japan fell 0.2 per cent for the year ended in November.

Travel and export 

The price index for export travel and tourism, which is lagged one month, increased 1.1 per cent in October after a 2.1 per cent advance in September.

Import air passenger fares decreased for the third consecutive month in November, falling 3.0 per cent following a 5.6 per cent drop in October. The decline in November was driven by lower seasonal European fares, which decreased 7.7 per cent. Despite the recent drops, the index rose 5.8 per cent over the past 12 months. Export air passenger fares fell 1.2 per cent in November, but advanced 11.5 per cent over the past year.

The price indexes for import air freight and export air freight each rose in November, advancing 2.1 per cent and 0.3 per cent, respectively. For the year ended in November, import air freight prices increased 6.4 per cent and prices for export air freight rose 3.9 per cent.

Investment banks, including Morgan Stanley and Merrill Lynch, warned of a mild US recession in 2008 this week, although they expected other countries to largely escape the crunch.

Related links

• US Bureau of Labour Statistics
• US Import and Export Price Indices - November 2007