Tracks changes in the prices paid for goods imported to the United States . The figure is significant in relation to the trade balance, the difference between the total value of exports and the total value of imports. A positive trade balance (surplus) acts as an appreciating weight on the dollar, reflecting demand for dollars in exchange for exports. Conversely, a negative value (deficit) puts downward pressure on the dollar's value. Given such impacts, traders assess changes in import prices to gain insight on the trade balance. The Import Price Index becomes useful in determining whether a change in import volume has actually sprung from a higher foreign demand or from a real increase in prices for foreign goods.

The US is a net importer nation, where imports a significant part of the nation's GDP. Accordingly, a major price swing in foreign goods can have significant impact on the US inflation.

The headline figure is the percentage change in the index from either the previous month or for the year. Import Price Index Excluding Petroleum gives a better overall assessment to the import price change in the United States since petroleum price is highly volatile.