U.S. import prices decreased 0.5 percent in August, the U.S. Bureau of Labor Statistics reported today, after rising 0.1 percent the previous month. The August decline was driven by a drop in fuel prices; prices for nonfuel goods were unchanged. Prices for U.S. exports fell 0.6 percent in August following a 0.2-percent increase in July.

Imports
Prices for U.S. imports fell 0.5 percent in August following a 0.1-percent increase in July and a 1.1-percent decline in June. With the exception of the August and June decreases, U.S. import prices advanced in each month of 2019. Despite the increases, the price index for U.S. imports declined 2.0 percent from August 2018 to August 2019.

Fuel Imports: Import fuel prices decreased 4.3 percent in August, after rising 0.7 percent the previous month. Prices for import fuel fell 11.1 percent over the past 3 months. In August, lower petroleum prices more than offset higher prices for natural gas. The price index for import petroleum declined 4.8 percent, after increasing 0.9 percent the previous month. Fuel prices decreased 8.7 percent over the past 12 months; prices for import petroleum fell 9.6 percent over the same period. The price index for natural gas imports rose 16.0 percent in August, after declines in each of the previous 4 months. Despite the August increase, natural gas prices fell 6.1 percent over the past year.

All Imports Excluding Fuel: Prices for nonfuel imports were unchanged for the second consecutive month in August following 0.3-percent decreases in both June and May. In August, lower prices for foods, feeds, and beverages and nonfuel industrial supplies and materials were offset by price increases for automotive vehicles and consumer goods. Prices for nonfuel imports declined 1.0 percent over the past 12 months, led by price decreases for industrial supplies and materials and capital goods.

Nonfuel Industrial Supplies and Materials: The price index for nonfuel industrial supplies and materials fell 0.3 percent in August, after ticking up 0.1 percent in July. The August drop was driven by decreases in prices for chemicals, textiles, and lumber, which more than offset higher unfinished metals prices.

Finished Goods: Finished goods prices were mostly up in August. Consumer goods prices ticked up 0.1 percent following a 0.2-percent advance in July. Prices for automotive vehicles ticked up 0.1 percent following a 0.2-percent drop the previous month. The price index for capital goods was unchanged for the second consecutive month in August. Lower computer accessories, peripherals, and semiconductors prices offset higher prices for telecommunications equipment.

Foods, Feeds, and Beverages: Import foods, feeds, and beverages prices fell 0.3 percent in August, after a 0.5-percent drop in July. The August decrease was driven by a 9.4-percent decline in fruit prices.

Exports
Prices for U.S. exports decreased 0.6 percent in August, after a 0.2-percent rise the previous month. The decline was driven by price decreases for both agricultural and nonagricultural exports. The price index for U.S. exports also fell on a 12-month basis in August, declining 1.4 percent from August 2018 to August 2019.

Agricultural Exports: The price index for agricultural exports declined 2.5 percent in August, after increases of 0.2 percent in July and 2.4 percent in June. The decrease in August was the largest monthly decline since the index fell 5.2 percent in July 2018. Lower prices for vegetables, corn, soybeans, cotton, meat, and wheat all contributed to the decline. Despite the monthly drop, prices for agricultural exports rose 0.5 percent over the past year.

All Exports Excluding Agriculture: Nonagricultural export prices fell 0.4 percent in August following a 0.2-percent increase in July. The August decrease was driven by price declines for nonagricultural industrial supplies and materials and automotive vehicles. The price indexes for consumer goods and capital goods both were unchanged in August. Prices for nonagricultural exports fell 1.6 percent for the year ended in August; lower prices for nonagricultural industrial supplies and materials more than offset price increases for finished goods over the 12-month period.

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices decreased 1.1 percent in August, after rising 0.8 percent the previous month. A 3.5-percent drop in export fuel prices drove the monthly decline, more than offsetting higher nonferrous metals prices.

Finished Goods: Export finished goods prices were mostly unchanged in August. Automotive vehicles prices fell 0.2 percent led by lower prices for nonengine parts and accessories. Prices for capital goods were unchanged for the month. Lower electrical generating equipment prices were offset by price increases for transportation equipment. The price index for consumer goods also was unchanged in August.


Measures of Import and Export Prices by Locality
Imports by Locality of Origin: Prices for imports from China edged down 0.1 percent in August following decreases of 0.2 percent in both July and June. Import prices from China have not advanced on a monthly basis since ticking up 0.1 percent in May 2018. The price index for imports from China fell 1.6 percent for the year ended in August. Import prices from Japan increased 0.2 percent in August, after being unchanged for each of the previous 4 months. The last time the index rose more than 0.2 percent was a 0.5-percent advance in January 2018. Prices for imports from Japan increased 0.2 percent over the past year. Import prices from the European Union fell 0.2 percent in August and 0.3 percent over the past 12 months. The price index for imports from Mexico declined 0.1 percent in August, after a 0.2-percent rise in July. Import prices from Canada fell 1.4 percent in August, after decreasing 4.8 percent for the 3 months ended in July. Despite the drops, prices for imports from Canada rose 1.1 percent over the past year.

Exports by Locality of Destination: Export prices to China declined 1.6 percent in August, after advancing 0.2 percent in July. Prices for exports to China fell 3.1 percent over the past 12 months. Export prices to Japan decreased 0.6 percent in August, after increasing 1.0 percent in July and ticking up 0.1 percent in June. Export prices to the European Union declined 0.2 percent in August following a 0.8-percent increase the previous month. The price indexes for exports to Canada and Mexico each decreased 0.8 percent in August.

Terms of Trade Indexes: Terms of Trade indexes are based on country, region, or grouping and measure the change in the purchasing power of exports relative to imports. The U.S. terms of trade with China decreased 1.5 percent in August, the largest decline since the index fell 1.7 percent in September 2018. Lower export prices to China drove the monthly decrease in August. U.S. terms of trade with China dropped 1.5 percent over the past 12 months. The U.S. terms of trade with Japan declined 0.8 percent in August following a 0.9-percent increase the previous month. U.S. terms of trade with Japan fell 0.5 percent from August 2018 to August 2019. The index for U.S. terms of trade with the European Union was unchanged in August, after advancing 0.6 percent in July. The U.S. terms of trade with Mexico declined 0.7 percent in August and 1.9 percent over the past year. U.S. terms of trade with Canada rose 0.6 percent in August and declined 0.7 percent over the past 12 months.

Import and Export Services
Imports: Import air passenger fares fell 8.2 percent in August following a 9.9-percent drop in July and a 6.7-percent advance in June. In August, lower European, Asian, and Latin American/Caribbean fares all contributed to the monthly decline. Import air passenger fares decreased 6.1 percent from August 2018 to August 2019. The price index for import air freight declined 0.7 percent in August, after dropping 2.5 percent the previous month. Import air freight prices fell 7.6 percent over the past year.

Exports: Export air passenger fares decreased 3.1 percent in August following a 3.3-percent rise in July. Lower European and Latin American/Caribbean fares more than offset higher Asian fares in August. The index for export air passenger fares fell 0.8 percent over the past 12 months. Export air freight prices declined 1.2 percent in August, the largest monthly drop since the index decreased 6.2 percent in December 2017. Despite the August decline, prices for export air freight rose 0.4 percent over the past year.