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The U.S. Bureau of Labor Statistics has released the latest data on import and export price indexes for June 2023. The report reveals a mixed performance in the prices of imported and exported goods. While the price index for U.S. imports experienced a slight decline, export prices witnessed a significant drop during the same period. These developments reflect various factors, including changes in nonfuel and fuel prices, as well as fluctuations in agricultural and nonagricultural exports. Here is an overview of the key findings from the report.
The price index for U.S. imports decreased by 0.2 percent in June, marking the fifth decline in the first half of 2023. This follows a 0.4-percent drop in May. Notably, lower nonfuel prices played a significant role in offsetting higher fuel prices. Import prices have now fallen by 6.1 percent over the past year, representing the largest 12-month drop since May 2020. These figures highlight the challenges faced by importers in a shifting economic landscape.
Import fuel prices rebounded in June, rising by 0.8 percent after a 4.3-percent decline in the previous month. Higher petroleum prices compensated for lower natural gas prices. However, despite the recovery, import fuel prices have plummeted by 36.4 percent over the past year, representing the largest 12-month drop since June 2020. Petroleum prices, specifically, witnessed a 1.1-percent increase in June, following a 3.8-percent fall in May. Over the year, petroleum prices have experienced a substantial decline of 35.1 percent. On the other hand, natural gas prices dropped by 5.6 percent in June and have declined by a staggering 78.4 percent from January to June, marking the most significant decrease in over 40 years.
Excluding fuel, the price index for nonfuel imports declined by 0.4 percent in June, following an unchanged level in the previous month. This overall decline was driven by lower prices across multiple sectors, including nonfuel industrial supplies and materials, consumer goods, capital goods, foods, feeds, and beverages, as well as automotive vehicles. Specifically, nonfuel industrial supplies and materials prices dropped by 1.1 percent in June, primarily due to lower prices for unfinished metals and nonmetals related to durable goods. The decline in prices for nonfuel imports over the past year amounted to 1.4 percent.
Prices for agricultural exports experienced a 1.6-percent decline in June, following a 2.4-percent drop the previous month. This decrease was primarily driven by lower prices for soybeans, fruit, and nuts, which more than offset the higher meat prices. The price index for agricultural exports has now fallen by 9.8 percent for the year ended in June, reflecting the most significant over-the-year decline since the period between March 2015 and March 2016.
Nonagricultural export prices also faced a downturn in June, decreasing by 0.9 percent following a 1.9-percent drop in May. The decline was mainly influenced by lower prices for nonagricultural industrial supplies and materials, as well as nonagricultural foods. However, this decline was partially offset by higher prices for capital goods, consumer goods, and automotive vehicles. Over the past 12 months, nonagricultural export prices have seen a considerable decline of 12.4 percent, marking the most significant over-the-year drop in over 35 years.
The latest data on U.S. import and export price indexes for June 2023 presents a mixed picture. While import prices experienced a slight decline, export prices faced a more significant drop. Various factors, including changes in nonfuel and fuel prices, as well as fluctuations in agricultural and nonagricultural exports, contributed to these trends. These developments highlight the challenges faced by importers and exporters in an evolving economic environment.