Prices for U.S. imports increased 0.3 percent in July, after advancing 1.1 percent the previous month, the U.S. Bureau of Labor Statistics reported today. The July increase was driven by higher fuel prices. U.S. export prices rose 1.3 percent in July following a 1.2-percent advance in June.

Imports
U.S. import prices increased 0.3 percent in July, after advances of 1.1 percent in June and 1.3 percent in May. The July rise is the smallest monthly increase since the index ticked up 0.1 percent in November. Prices for U.S. imports advanced 10.2 percent from July 2020 to July 2021, led by higher prices for both nonfuel and fuel imports.

Fuel Imports: Prices for import fuel rose 2.9 percent in July following increases of 5.5 percent in June and 5.2 percent in May. Higher prices for both petroleum and natural gas contributed to all 3 monthly advances. Prices for import fuel advanced 66.5 percent for the year ended in July. Petroleum prices rose 2.1 percent in July and 65.5 percent over the past 12 months. The price index for natural gas increased 17.1 percent in July and 120.9 percent from July 2020 to July 2021; the 12-month advance in July was the largest over-the-year increase since October 2005.

All Imports Excluding Fuel: The price index for nonfuel imports was unchanged in July, after a 0.7-percent increase in June and a 0.9-percent advance in May. In July, higher prices for capital goods; automotive vehicles; consumer goods; and foods, feeds, and beverages offset a drop in nonfuel industrial supplies and materials prices. Prices for nonfuel imports rose 6.3 percent for the year ended in July.

Foods, Feeds, and Beverages: Foods, feeds, and beverages prices advanced 0.3 percent in July following a 1.9-percent increase in June. The July rise was led by higher fish and shellfish prices.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices fell 1.7 percent in July, the first monthly decline since November 2020. The July decrease was driven by a 50.1-percent drop in lumber prices.

Finished Goods: Prices for each of the major finished goods categories increased in July. Capital goods prices advanced 0.4 percent for the second consecutive month. Higher prices for computers, peripherals, and semiconductors led both the July and June rises. Prices for automotive vehicles increased 0.4 percent in July, driven by higher parts prices. Consumer goods prices also rose in July, ticking up 0.1 percent.

Exports
The price index for U.S. exports increased 1.3 percent in July following advances of 1.2 percent in June and 2.3 percent in May. U.S. export prices have not decreased on a monthly basis since declining 3.5 percent in April 2020. Higher nonagricultural export prices in July more than offset lower agricultural export prices. U.S. export prices advanced 17.2 percent for the year ended in July, up from the 16.9-percent increase the previous month.

Agricultural Exports: Agricultural export prices fell 1.7 percent in July, after a 1.5-percent advance in June and a 6.1-percent increase in May. The decline was the first monthly drop since a 2.2-percent decrease in August 2020. Lower prices for soybeans, fruit, and corn more than offset higher prices for dairy products, nuts, vegetables, and cotton. Despite the decline, prices for agricultural exports rose 29.2 percent from July 2020 to July 2021.

All Exports Excluding Agriculture: Prices for nonagricultural exports advanced 1.6 percent in July following a 1.1-percent increase the previous month. The price index for nonagricultural exports has not declined on a monthly basis since October 2020. In July, higher prices for nonagricultural industrial supplies and materials, capital goods, automotive vehicles, and nonagricultural foods all contributed to the overall advance in nonagricultural export prices. Nonagricultural export prices rose 15.8 percent over the past 12 months.

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and material prices increased 3.4 percent in July following a 2.1-percent advance the previous month. The rise in July was led by an 8.7-percent increase in fuel prices.

Finished Goods: Prices for most of the major finished goods categories advanced in July. Capital goods prices rose 0.5 percent, after a 0.4-percent advance in June. The July increase was the largest monthly rise since April 2018 and was led by a 0.6-percent advance in the price index for computers, peripherals, and semiconductors. Prices for automotive vehicles increased 0.4 percent, the largest 1-month rise since January 2020. Consumer goods prices were unchanged in July.

Measures of Import and Export Prices by Locality
Imports by Locality of Origin: The price index for imports from China rose 0.7 percent in July, after increases of 0.4 percent in June and 0.5 percent in May. The advance in July was the largest 1-month rise since July 2008. Higher prices for machinery manufacturing, computer product manufacturing, and electronic equipment manufacturing drove the July increase. Import prices from China rose 3.7 percent for the year ended in July, the largest 12-month advance since November 2011. Prices for imports from Japan increased 0.4 percent in July following a 0.1-percent drop the previous month. The price index for imports from Japan rose 2.3 percent over the past 12 months, the largest over-the-year advance since December 2011. Import prices from the European Union and Mexico also increased in July, rising 0.9 percent and 0.2 percent, respectively. In contrast, prices for imports from Canada declined 1.7 percent in July, after advancing 3.7 percent in June and 4.7 percent in May. Despite the drop in July, import prices from Canada increased 35.1 percent over the past 12 months.

Exports by Locality of Destination: Export prices to China rose 0.7 percent in July following advances of 0.8 percent in June and 1.7 percent in May. Prices for exports to China have not recorded a monthly decline since the index fell 1.2 percent in September 2020. The price index for exports to China increased 13.5 percent from July 2020 to July 2021. Prices for exports to Japan recorded no change in July, after rising 1.3 percent the previous month. Export prices to Japan advanced 14.7 percent over the past year. The price index for exports to the European Union ticked up 0.1 percent in July following increases of 1.2 percent in June and 1.0 percent in May. Prices for exports to Canada and Mexico also rose in July, advancing 1.4 percent and 0.2 percent, respectively.

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 index for U.S. terms of trade with China increased 0.1 percent in July, after advancing 0.4 percent the previous month. In July, higher import prices from China more than offset rising prices for exports to China. U.S. terms of trade with China rose 9.5 percent for the year ended in July. The index for U.S. terms of trade with Japan fell 0.5 percent in July following increases of 1.4 percent in June and 2.9 percent in May. U.S. terms of trade with the European Union declined 0.8 percent in July, the first 1-month decrease since October 2020. U.S. terms of trade with Canada advanced 3.1 percent in July following a 2.7-percent drop the previous month and a 3.2-percent decrease in May. The July advance was the first monthly increase since November 2020. The index for U.S. terms of trade with Mexico was unchanged in July.

Import and Export Services
Imports: Import air passenger fares rose 0.9 percent in July following advances of 9.6 percent in June and 5.0 percent in May. In July, higher European and Latin American/Caribbean fares more than offset lower Asian fares. Import air passenger fares increased 22.3 percent over the past year, the largest advance since the index rose 23.3 percent in May 2010. Prices for import air freight decreased 4.3 percent in July, after increasing 2.3 percent in June. The July drop was the first 1-month decline since March. Despite the decrease in July, import air freight prices advanced 25.0 percent over the past 12 months.

Exports: Export air passenger fares advanced 8.2 percent in July, after rising 7.8 percent the previous month. The July increase was driven by higher Asian and European fares. The index for export air passenger fares advanced 30.2 percent for the year ended in July, the largest 12-month rise since the index increased 30.5 percent in July 2010.