Germany: Import prices dropped sharply

Germany’s import price index posted its biggest drop in April since the global financial crisis in 2009 amid lower energy prices. Imports fell by an average of 7% compared with the same month last year, the German Statistics Office announced on Wednesday.

This was the sharpest drop in import prices since October 2009, when the financial crisis triggered a global economic recession.

“The decisive factor for the drop is mainly a base effect due to the high level of prices in the previous year because of the war in Ukraine”, explained the trend statisticians.

Economists polled by the Reuters news agency had expected a drop of just 5.8 percent. March saw the first year-on-year decline since January 2021, down 3.8 percent.

Cheaper energy prices are a significant factor

Currently, energy imports are 31.8% cheaper than in April 2022. The drop in the price of imported natural gas – which fell 38.7% – contributed to this. Coal, electricity, oil products and petroleum were also significantly cheaper.

On the other hand, the prices of imported consumer goods rose 4.6 percent. Prices for fruit and vegetables, as well as meat and meat products, rose particularly sharply.

Germany’s Statistical Office is due to publish a first official estimate on the cost of living and consumer goods prices on Wednesday afternoon.

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los/kb (dpa, Reuters)