U.S. Import Price Index Unchanged While Exports Decline

Fuel Imports: Prices for import fuel declined 0.3 percent in December following decreases of 6.4 percent in November and 3.9 percent in October. Lower petroleum prices in December more than offset higher natural gas prices. Import fuel prices fell 9.4 percent from December 2022 to December 2023. The price index for import petroleum decreased 0.3 percent in December, after declining 7.7 percent in November and 4.1 percent in October. Import petroleum prices fell 4.0 percent over the past 12 months. In contrast, prices for import natural gas rose 0.3 percent in December following a 35.7-percent increase in November. Despite the recent increases, natural gas prices fell 61.9 percent over the past year, the largest 12-month drop since the index decreased 70.7 percent for the year ended June 2023. 

All Imports Excluding Fuel: Nonfuel import prices were unchanged in December, after ticking up 0.1 percent in November and declining 0.1 percent in October. Higher prices in December for nonfuel industrial supplies and materials and automotive vehicles were offset by lower prices for capital goods and foods, feeds, and beverages. The price index for nonfuel imports declined 0.8 percent for the year ended in December. 

Foods, Feeds, and Beverages:

Prices for import foods, feeds, and beverages edged down 0.1 percent in December following a 1.0-percent advance the previous month. The December drop was driven by a 2.4-percent decrease in fish and shellfish prices.

Nonfuel Industrial Supplies and Materials: 

Nonfuel industrial supplies and materials prices rose 0.4 percent in December, after increasing 0.2 percent in November. The December advance was the largest monthly rise since the index increased 1.2 percent in December 2022 and was led by higher metals prices. 

Finished Goods: 

Prices for the major finished goods import categories were mixed in December. Capital goods prices edged down 0.1 percent for the third consecutive month in December. Lower prices for semiconductors and computer accessories, peripherals, and parts led the December drop in capital goods prices. 

Also Read: US job openings fell slightly in November but remain high by historic standards 

In contrast, prices for import automotive vehicles ticked up 0.1 percent in December, after declining 0.1 percent the previous month. The advance was driven by higher prices for automotive tires and tubes. Import consumer goods prices were unchanged in December for the fifth consecutive month. 

Exports Decrease For Third Month 

The price index for U.S. exports decreased 0.9 percent for the third consecutive month in December. Those were the first 1-month declines since June 2023. Lower prices for both agricultural and nonagricultural exports contributed to the December drop. U.S. export prices fell 3.2 percent over the past year. Despite the recent declines, the December decrease was the smallest 12-month drop since February 2023.

Agricultural Exports

Export agricultural prices declined 0.6 percent in December following a 0.1-percent advance in November. Lower prices in December for soybeans and other oilseeds, corn, meat, and nuts more than offset higher fruit prices. Prices for agricultural exports decreased 8.9 percent for the year ended in December. The 12-month drop was largely driven by lower prices for corn, soybeans, wheat, and vegetables over the past year. 

All Exports Excluding Agriculture:

Prices for nonagricultural exports declined 0.9 percent in December following decreases of 1.0 percent in November and 0.9 percent in October. 

Also Read: Federal Reserve on cusp of what some thought impossible: Defeating inflation without steep recession

Lower prices in December for nonagricultural industrial supplies and materials and nonagricultural foods more than offset higher prices for consumer goods and automotive vehicles. The price index for nonagricultural exports fell 2.4 percent from December 2022 to December 2023. 

Nonagricultural Industrial Supplies and Materials

Nonagricultural industrial supplies and materials prices declined 2.3 percent for the second consecutive month in December. The December and November drops were driven by lower fuel prices. The 2.3-percent declines were the largest 1-month drops since a 5.0-percent decrease in May. 

Finished Goods: 

Prices for the major finished goods export categories were mostly up in December. Consumer goods prices rose 0.3 percent following a 0.2-percent drop in November. Higher prices for coins, gems, jewelry, and collectables in December led the advance in consumer goods prices. The price index for automotive vehicles advanced 0.2 percent in December, after a 0.1-percent decline the previous month. The increase was driven by a 0.6-percent rise in passenger car prices. Prices for export capital goods were unchanged in December following a 0.1-percent decrease in November.

Read the Full Press Release Here