In April, the prices for German imports fell more than at any time since the global financial crisis of 2009. The reason for this is the significantly lower energy prices compared to the previous year.
The prices of goods imported into Germany fell sharply in April. Import prices fell by seven percent compared to the same month last year, as the Federal Statistical Office announced today. This is the sharpest decline since October 2009, when the financial crisis triggered a global economic slowdown. Economists surveyed by the Reuters news agency had only expected prices to fall by 5.8 percent.
In March, import prices fell for the first time since January 2021, down 3.8 percent year-on-year. Last summer, they were at times more than 30 percent more expensive. The triggers were the exploding energy prices and considerable tension in world trade as a result of the Russian attack on Ukraine.
Energy imports more than 30 percent cheaper
This time, import prices fell by 1.7 percent compared to the previous month, the eighth time in a row. The Federal Statistical Office explains the now first and particularly sharp drop in prices in the annual comparison with a base effect: because prices rose particularly sharply in the previous year, the current comparison with the high level at the time is low.
Energy imports were 31.8 percent cheaper than in April 2022, the second full month after the start of the Ukraine war. One reason for this is falling prices for imported natural gas: there was a minus of 38.7 percent. Hard coal (-44.2 percent), electricity (-38.6 percent), as well as petroleum products (-28.4 percent) and crude oil (-21.2 percent) were also significantly cheaper.
Energy costs have also fallen significantly for consumers. According to the comparison portal Check24, the annual expenses for a model household amounted to an average of 5700 euros in May. That is almost two percent less than in the previous month. Compared to the record month of September 2022 (7912 euros), consumers had to pay a whopping 28 percent less.
Falling import prices delayed for consumers
Intermediate goods also fell by 6.5 percent compared to the same month last year. The prices for imported consumer goods, on the other hand, rose by 4.6 percent. The increase also continued for food: Here the premium was 10.4 percent. The prices of fruit and vegetable products (+13.9 percent) and meat and meat products (+9.2 percent) rose particularly sharply.
Since the German economy obtains many preliminary products and raw materials from abroad, falling import prices also affect general inflation and consumers with a delay. The cost of living is likely to rise 6.5 percent in May compared to the same month last year, more slowly than it has in more than a year, economists polled by “Reuters” expect. The statistical office wants to publish a first official estimate in the afternoon.