Germany records largest import price drop since 1987

02 Sep '23

2 min read

Pic: Shutterstock/foto-select

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In July 2023, Germany experienced a 13.2 per cent YoY drop in import prices, marking the largest decline since January 1987.
This decrease mainly stemmed from high price increases in 2022 due to the Ukraine war, creating a base effect, as per the Federal Statistical Office.
The YoY export prices decreased substantially by 3.2 per cent in July 2023.

Germany’s import prices were 13.2 per cent year-on-year (YoY) lower in July 2023. This represents the largest YoY decrease in prices recorded since January 1987. As in the previous months, the decline is primarily due to a base effect originating from the large price increases in 2022 as a result of the war in Ukraine.

The YoY rate of change was -11.4 per cent in June 2023, and -9.1 per cent in May 2023. Import prices were also down in July 2023 at -0.6 per cent compared with June 2023. The YoY export prices decreased substantially by 3.2 per cent in July 2023. Compared with the previous month, export prices fell by 0.3 per cent, the Federal Statistical Office (Destatis) said in a press release.

In July 2023, energy imports cost 47.4 per cent less YoY but were 1.4 per cent more expensive than June 2023, largely influenced by a 58.7 per cent drop in natural gas prices. Excluding energy, import prices were 3.1 per cent lower YoY and 0.9 per cent lower compared to June 2023.

The import price index dropped 11.0 per cent YoY when crude oil and mineral oil were excluded. Meanwhile, export prices in July 2023 recorded a 3.2 per cent YoY decline, the largest since September 2009. Energy export prices were 54.7 per cent lower YoY, primarily due to a 66.1 per cent drop in natural gas prices.

Intermediate goods on both the import and export sides showed decreases, while consumer goods generally saw a rise.

Fibre2Fashion News Desk (NB)

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