German Import Prices Rise by 6.8% Year-Over-Year Amid Ongoing Energy Costs

Germany's import prices rose by 6.8% year-over-year (YoY) in July, according to the Federal Statistical Office (Destatis). This is higher than the 6.1% increase seen in June and matches the same rate as May. Import prices have been steadily increasing since February 2023, with a notable spike in energy costs due to the ongoing war in the Middle East.

Natural gas prices surged by 4.5% month-over-month (MoM) in July, while crude oil prices dropped by 7.7%. Excluding energy prices, import prices rose by 4.8% YoY and 0.1% MoM. If only crude oil and mineral oil products are excluded, the import price index increased by 5.4% YoY and 0.3% MoM.

Destatis also reported that durable consumer goods saw a 1.5% increase in import prices YoY and a 0.4% rise in export prices YoY. The war's impact on energy costs continues to have a significant effect on Germany's economy, with notable price increases for mineral oil products, crude oil, and natural gas.

Export prices, meanwhile, rose by 4.2% YoY in July, the largest increase since February 2023 when they were 6.6% higher YoY. These export prices are up 0.4% MoM from June.