U.S. import prices decreased 0.6 percent in March following a 0.2-percent decline in February, the U.S. Bureau of Labor Statistics reported today. Lower prices for fuel and nonfuel imports each contributed to the March drop in U.S. import prices. Prices for U.S. exports fell 0.3 percent in March, after increasing 0.4 percent in February and 0.3 percent in January.

Prices for U.S. imports fell 0.6 percent in March, the largest 1-month decline since November 2022. The price index for U.S. imports decreased 4.6 percent over the past year, the largest 12-month drop since the index declined 6.3 percent in May 2020.

Fuel Imports: Import fuel prices declined 2.9 percent in March following a 5.7-percent drop the previous month. Prices for import fuel have not recorded a 1-month advance since June 2022. Lower prices for both petroleum and natural gas contributed to the decrease in overall fuel prices in March. Import fuel prices decreased 27.9 percent for the year ended in March. Petroleum prices fell 1.2 percent in March, after declining 0.2 percent in February. Prices for import petroleum declined 28.6 percent over the past 12 months, the largest over-the-year decrease since September 2020. Natural gas prices declined 31.3 percent in March following a 49.9-percent drop in February. Prices for natural gas decreased 28.3 percent over the past year, the largest 12-month decline since March 2020.

All Imports Excluding Fuel: The price index for nonfuel imports decreased 0.5 percent in March, after rising 0.9 percent over the previous 3 months. The decline is the largest monthly drop since July 2022. Lower March prices for nonfuel industrial supplies and materials; consumer goods; foods, feeds, and beverages; capital goods; and automotive vehicles all contributed to the overall decrease in nonfuel import prices. Nonfuel import prices declined 1.5 percent from March 2022 to March 2023, the first 12-month drop since June 2020.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices decreased 0.5 percent in March, the first 1-month decline since a 1.0-percent drop in October 2022. Lower fruit prices in March more than offset higher prices for vegetables and meat.

Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials fell 1.5 percent in March, after edging up 0.1 percent the previous month. Lower prices for unfinished metals and chemicals drove the decrease in March.

Finished Goods: Import prices decreased for each of the major finished goods categories in March. The price index for consumer goods declined 0.3 percent, the largest monthly drop since June 2022. Consumer goods prices also fell 0.3 percent over the past 12 months, the first over-the-year drop since July 2020. Prices for import capital goods edged down 0.1 percent in March, led by a 2.3-percent decline in computer accessories, peripherals, and parts prices. The price index for automotive vehicles fell 0.1 percent in March, driven by lower passenger cars prices.

Exports
U.S. export prices declined 0.3 percent in March, the first 1-month drop since December 2022. Lower prices in March for agricultural exports and nonagricultural exports each contributed to the overall decrease. Prices for U.S. exports decreased 4.8 percent for the year ended in March, the largest 12-month decline since a 6.7-percent drop from May 2019 to May 2020.

Agricultural Exports: The price index for agricultural exports decreased 1.5 percent in March, after increasing 1.2 percent the previous month. Lower prices for corn, soybeans, wheat, and fruit in March more than offset higher meat prices. Prices for agricultural exports declined 2.3 percent over the past year, the first 12-month drop since the index fell 2.9 percent for the year ended in August 2020. The March 12-month decrease was primarily led by lower prices for soybeans, wheat, corn, and meat.

All Exports Excluding Agriculture: Prices for nonagricultural exports declined 0.2 percent in March following a 0.3-percent advance in February. Lower prices for nonagricultural industrial supplies and materials and nonagricultural foods in March more than offset higher prices for capital goods and consumer goods. Nonagricultural export prices fell 5.2 percent over the past 12 months, the largest over-the-year drop since the index declined 7.0 percent in May 2020.

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices decreased 0.5 percent in March, after being unchanged the previous month. The March decline was driven by lower prices for nonferrous metals and fuels.

Finished Goods: Export prices for the major finished goods categories were mostly up in March. The price index for capital goods rose 0.2 percent in March following increases of 0.5 percent in February and 0.8 percent in January. Prices for consumer goods ticked up 0.1 percent in March, after rising 0.6 percent in February and 1.0 percent in January. The March advance was led by a 5.5-percent increase in jewelry prices. Automotive vehicles prices were unchanged in March following a 0.1-percent drop in February and a 1.5-percent advance in January.

More information for the major import and export price indexes can be found at www.bls.gov/web/ximpim/largest.htm.

Measures of Import and Export Prices by Locality
Imports by Locality of Origin: Import prices from China fell 0.5 percent in March following a 0.1-percent advance in February and a 0.5-percent decline in January. The March and January declines are the largest monthly drops since a 0.6-percent decrease in May 2013. The March decrease was led by lower prices for communications equipment manufacturing. The price index for imports from China declined 1.3 percent over the past 12 months. Prices for imports from Japan fell 0.3 percent in March, the largest 1-month drop since May 2020. Despite the decrease, prices for imports from Japan increased 0.7 percent for the year ended in March. Import prices from Canada and the European Union also declined in March, decreasing 1.1 percent and 0.5 percent, respectively. The March declines followed a 3.9-percent decrease in prices for imports from Canada in February and a 0.4-percent increase in prices for imports from the European Union. The price index for imports from Mexico was unchanged in March.

Exports by Locality of Destination: Prices for exports to China declined 1.2 percent in March, after advancing 1.6 percent the previous month. Export prices to China decreased 9.0 percent over the past year, the largest 12-month decrease since the 12-month percent change series was first published in December 2018. The price index for exports to Japan decreased 1.9 percent in March following a 1.2-percent advance in February. Prices for exports to Japan declined 8.3 percent for the year ended in March. Export prices to Canada fell 0.9 percent in March, after a 0.2-percent increase in February. The price index for exports to the European Union declined 0.2 percent in March following a 0.3-percent drop the previous month. In contrast, prices for exports to Mexico rose 0.2 percent in March.

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. U.S. terms of trade with China declined 0.7 percent in March, after increasing 1.5 percent the previous month. Lower export prices to China in March more than offset falling import prices from China. U.S. terms of trade with China fell 7.8 percent over the past 12 months, the largest decrease since the 12-month percent change series was first published in December 2018. The index for U.S. terms of trade with Japan decreased 1.6 percent in March following a 1.4-percent advance in February. U.S. terms of trade with Japan fell 8.9 percent for the year ended in March. In contrast, U.S. terms of trade with Canada and the European Union rose in March, increasing 0.2 percent and 0.4 percent, respectively. U.S. terms of trade with Mexico advanced 0.3 percent in March.

Import and Export Services
Imports: The index for import air passenger fares rose 1.9 percent in March, after increasing 2.1 percent the previous month. Higher Latin American/Caribbean and European fares in March more than offset lower Asian fares. Import air passenger fares advanced 11.3 percent from March 2022 to March 2023. Prices for import air freight declined 2.9 percent in March following a 5.3-percent decrease in February and an 11.8-percent drop in January. Lower prices for European and Asian air freight each contributed to the March decline. Import air freight prices fell 35.8 percent over the past year.

Exports: Export air passenger fares increased 6.4 percent in March, after decreasing 13.7 percent in February and advancing 12.4 percent in January. In March, higher Latin American/Caribbean and European fares more than offset lower Asian fares. Export air passenger fares rose 8.5 percent for the year ended in March. Export air freight prices fell 4.4 percent in March, the first monthly decline since the index decreased 2.9 percent in November 2022, and the largest 1-month drop since a 6.7-percent decline in October 2020. Prices for export air freight fell 5.9 percent over the past 12 months, the first over-the-year decrease since November 2020.