The Import Price Index measures the average change over time in the prices paid by U.S. residents for imported goods and services.

It is a key indicator of inflation, as it reflects the prices of goods and services that are used in the production of U.S. goods and services, as well as the prices of goods and services that are consumed by U.S. households.

What is the Import Price Index?

The U.S. Import Price Index is published by the Bureau of Labor Statistics (BLS) as part of the U.S. International Price Program.

The index measures the average change in prices for imported goods and services over time, providing insights into the cost of foreign products consumed by U.S. residents.

The data is collected from a wide range of sources, including importers, exporters, and government agencies, and is classified according to the Harmonized System (HS) classification.

How to Read the Report

The U.S. Import Price Index report provides a percentage change in the index on a monthly, quarterly, and annual basis.

The data is typically presented in two ways:

  • Headline import prices: This figure represents the overall change in import prices, including all goods and services.
  • Core import prices: This measure excludes volatile items such as food and energy, providing a more stable view of underlying price trends.

Why are Import Prices important?

Understanding import prices is essential for several reasons:

  • Inflation: Changes in import prices can directly impact domestic inflation rates. When import prices rise, the cost of goods and services may increase, leading to higher consumer price inflation.
  • International trade: Import prices can also influence trade balances. If the cost of imported goods and services rises, domestic demand for these items may decrease, potentially leading to an improved trade balance.
  • Monetary policy: Central banks monitor import prices to gauge inflationary pressures and make informed decisions about monetary policy, such as setting interest rates or implementing quantitative easing measures.

Who publishes the Import Price Index?

The Bureau of Labor Statistics (BLS) is responsible for collecting and publishing the Import and Export Price Indexes, including the import price data.

The BLS gathers price information from a variety of sources, such as importers, exporters, and government agencies, to create a comprehensive view of price movements in international trade.

When is the Import Price Index released?

The U.S. Import Price Index report is usually released monthly by the BLS, with a lag of approximately two weeks after the end of the reference period.

The data is made available on the BLS website, where users can access historical data, analysis, and supporting documentation.

Additionally, the report is widely covered by financial news outlets and data providers, making it easily accessible for market participants and the general public.