export prices
Industrial product export prices rose 21.8 percent year over year in June, reflecting a continuation of a steady upward trend that began in early 2006. The June reading is just slightly above May, marking the steepest annual increase in the series since its inception. This sustained rise underscores a strong external demand environment and pricing power in key sectors.
June saw export prices driven notably by gains in capital goods and non-durable consumer goods, which contributed to higher annual rates compared with May. In contrast, energy prices registered a notable decline, dropping around six and a half percentage points to 135.9 percent, a result of weaker generation, transmission, and distribution of electrical energy this month relative to last year.
up to 30.4% (import prices)
On the import side, industrial product prices climbed 30.4 percent year over year in June, edging three-tenths above the May rate. The acceleration was predominantly fueled by energy, which surged to 118.1 percent as coke ovens and refined oil prices rose compared with June of the previous year. Despite this overall rise, prices for crude oil and natural gas extraction carried a mixed message, rising but not as sharply as in some earlier periods.
Energy trends played a central role in shaping the June performance, with a notable contribution from higher refined oil costs. Yet the impact of crude oil and natural gas extraction showed a softer year-over-year increase than in prior months, somewhat tempering the overall import price picture.
Looking at the broader pattern, export prices had increased for 18 consecutive months on a year-over-year basis through May, while import prices had posted 16 straight months of gains. This extended streak highlights ongoing inflationary pressure across both sides of the trade balance.
export prices
Within the export sector, non-durable goods stood out with an annual rise of 11.7 percent in June, up eight tenths from May. This uptick mirrors a shift in the composition of exports, including food and consumer products, which contributed to higher average prices compared with the same month of the previous year.
Manufacturing shifts in vegetable and animal oils and fats, meat processing, preservation, and meat product production helped push prices higher than in June of the prior year, contrasting with a softer performance the previous June. Capital goods also advanced by six-tenths of a percentage point, reaching 5.6 percent, supported by stronger prices in motor vehicles and related equipment.
Meanwhile, the energy-intensive sector remained the sole negative influencer on export prices, with a substantial decline of about six and a half points to 135.9 percent. The moderation in electricity generation, transmission, and distribution pricing relative to the prior year dominated this downturn, offsetting some of the gains seen elsewhere in the export basket.
Even so, refined oil prices had a higher deterioration in year-over-year terms but still contributed positively to the overall export trajectory, aligning with the broader energy price dynamics observed in the period. The overall export index excluding energy rose 0.5 percentage points in June to 14 percent, marking the highest level since the series began in 2006.
up to 30.4%
For imports, June brought a robust year-over-year surge of 30.4 percent, a rate three-tenths higher than May. Energy, in particular, accelerated, climbing above 118 percent on the strength of higher coke oven and refined oil prices. The rise in crude oil and gas extraction prices, while significant, was smaller than in the prior year, reflecting shifts in the energy market dynamics from year to year.
Capital goods posted a notable gain as well, climbing about one and a half points to 9.1 percent. This uptick was driven by higher prices for machinery and equipment in manufacturing, alongside stronger prices for motor vehicles, trailers, and semi-trailers, contributing to a broader build in import costs compared with the same month in 2021.
In contrast, intermediate goods saw a retreat, with rates down roughly one and a half points to 20.2 percent. The decline in metallurgy prices stood out within this segment, reflecting higher production of iron, steel, and ferroalloys and, to a lesser extent, increased activity in the chemical industry relative to June 2021.
Excluding energy, import prices declined slightly in June versus the previous year’s June, slipping to 13.4 percent, down by one tenth from May. The underlying message remains one of a broad but uneven pattern across sectors, with energy acting as the primary source of volatility while other categories show softer dynamics.
Import prices are also rising
On a monthly basis, export prices advanced by 1 percent from May to June, with the prior month showing a 1.1 percent increase. This marks the continuation of almost two years of monthly increases and highlights persistent momentum in export pricing. Meanwhile, import prices rose by 1.7 percent after a May dip of 0.3 percent, ending a stretch of 18 consecutive monthly increases and signaling a renewed pace of import cost growth.
These movements mirror broader inflationary pressures in international trade, with energy markets continuing to exert outsized influence on price trajectories for both exports and imports. Analysts attribute much of the June behavior to energy pricing developments, industrial activity, and the evolving mix of goods traded in the global marketplace. (INE)