The U.S. Import Price Index fell 0.2 percent in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Declines in both imported petroleum prices and nonpetroleum prices contributed to the July decrease. Led by a continued decline in agricultural prices, the U.S. Export Price Index also decreased in July, falling 0.1 percent.

Import Goods

Import prices declined on average in July, after remaining unchanged in the previous two months. The July decline resumed a downward trend in the index that dates back to the beginning of 1997. For the year ended in July, the index was down 1.9 percent. Both petroleum and nonpetroleum import prices contributed to the July decline, falling 0.7 and 0.1 percent, respectively. Imported petroleum prices fell 23.3 percent over the past six months, and were down 8.2 percent for the July 1996-1997 period. Prices for nonpetroleum imports have either declined or been unchanged over the past seven months and were down 1.5 percent over the past 12 months.

Capital goods prices led the decline in nonpetroleum imports, falling 0.4 percent in July. Most of the decline in capital goods prices was attributable to falling prices for imported computers. For the year ended in July, capital goods prices were down 5.6 percent. The price index for imported foods, feeds, and beverages also fell in July, down 1.9 percent. This index was up 2.7 percent over the past 12 months.

In contrast, the import price indexes for nonpetroleum industrial supplies and materials and automotive vehicles rose in July, up 0.3 and 0.2 percent, respectively. For the year ended in July, both indexes were up 0.5 percent. Prices for imported consumer goods were unchanged last month and down 0.5 percent over the past 12 months.

						    Jul
			Jul '97	Jun '97	Jul '96	1996-97
Imports
 All Imports		—0.2	 0.0-R  —0.1	 —1.9
 Petroleum		—0.7	—1.8-R	 1.9	 —8.2
 Non-Petroleum		—0.1	 0.0-R	—0.4	 —1.5

Exports
 All Exports		—0.1	 0.0-R	—0.5	 —2.3
 Agricultural		—0.9	—1.9-R	—1.9	—19.0
 Nonagricultural	 0.0	 0.2-R	—0.2	  0.1

R--Revised to reflect late reports and corrections by respondents.

Export Goods

Export prices were largely unchanged for the second month in a row, falling a modest 0.1 percent after recording no change in the previous month. For the year ended in July, export prices were down 2.3 percent. The July decrease was led by agricultural export prices, down 0.9 percent, due primarily to continued declines in grain prices. Prices for agricultural exports fell 10.6 percent over the past four months and 19.0 percent for the year ended in July. In contrast, the price index for nonagricultural exports was unchanged in July after increasing 0.2 percent in June. Nonagricultural export prices have not changed by more than 0.2 percent over the past year and were up just 0.1 percent over the July 1996-1997 period.

Prices for both consumer exports and exported automotive vehicles increased 0.2 percent in July after recording little movement the month before. The index for consumer goods was up 0.1 percent in June and 0.9 percent over the past year, while average prices of exported automotive vehicles were unchanged in June and up 1.3 percent for the year ended in July. Exported nonagricultural industrial supplies and materials prices were unchanged in July and up 0.7 percent over the past 12 months.

In contrast, the export price index for capital goods, which accounts for about 44 percent of the overall export index, fell 0.1 percent last month. Capital goods prices decreased or were unchanged in each of the last six months and were down 0.7 percent over the year ended in July.

August 19, 1997U.S. Department of Labor

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