If the price of imported items is up over 9% year-over-year (YoY), and the price of exported items are up over 9% – it is hard to conclude that the general price increase USA consumers are seeing for goods is any less.
The March 2011 export and import price index report stated in part:
U.S. import prices rose 2.7 percent in March, the U.S. Bureau of Labor Statistics reported today, following a 1.4 percent advance in February. The March increase was driven by both higher fuel and nonfuel prices. The price index for U.S. exports increased 1.5 percent in March after rising 1.4 percent the previous month.
All Imports: Import prices continued a six-month upward trend in March, rising 2.7 percent. The increase was the largest one-month advance since a similar 2.7 percent rise in June 2009. Prices of imports rose 9.7 percent for the year ended in March, the largest 12-month rise since April 2010. Rising fuel and nonfuel prices each contributed to the increase over the past year.
Fuel Imports: The price index for import fuel jumped 9.0 percent in March, the largest monthly rise since a 16.0 percent advance in June 2009. Fuel prices increased 28.7 percent for the year ended in March, driven by a 36.6 percent advance over the past six months. Higher petroleum prices drove both the March increase in fuel prices and the rise over the past 12 months, increasing 10.5 percent in March and 31.3 percent over the past year. In contrast, natural gas prices declined 14.0 percent in March and fell 11.6 percent over the
past 12 months.
All Exports: Export prices advanced 1.5 percent in March after rising 1.4 percent in February. The March increase matched a similar 1.5 percent advance in November 2010, and those were the largest increases since July 2008. Prices for overall exports rose 9.5 percent for the year ended in March, the largest 12-month advance since July 2008. Higher prices for both agricultural and nonagricultural exports contributed to both the monthly and 12-month increases in overall export prices.
Agricultural Exports: The price index for agricultural exports rose 2.3 percent in March, led by a 9.2 percent increase in corn prices and a 10.5 percent advance in cotton prices. Agricultural prices rose 34.0 percent over the past year, the largest 12-month increase since a 39.7 percent advance in July 2008. Rising corn and cotton prices, up 77.7 percent and 153.8 percent, respectively, were the largest contributors to the 12-month increase in agricultural prices.
Trade Deficit Shrinks: Petroleum Imports Fall in February 2011 by Steven Hansen
USA Exporting Inflation by Steven Hansen
U.S. Trade Deficit Increased in January by Steven Hansen