German import prices experienced a lesser decline than at any point within the last 12 months.
In April, German import prices saw a decrease of 1.7% compared to the previous year, marking the 14th consecutive drop, but the smallest one so far. March's decrease was 3.6%, while February's was even higher at 4.9%. Economists predicted a larger fall of 1.8%. Comparing April to March, there was a drop of 0.7%.
Germany's economy heavily relies on imported raw materials and semi-finished products. As a result, decreasing import prices take some time to impact overall inflation. The current consumer price index is at 2.4%. The Munich Ifo Institute believes it will drop below the 2% target set by the European Central Bank by August.
During April, energy imports cost less: prices dropped by 7%. Prices for natural gas decreased by 23.5%, while electricity became 38.4% cheaper and coal 16.9% cheaper than in April 2023. However, natural gas products, such as gasoline, became 5.5% pricier, and oil prices increased by 8.1%.
Agricultural products were 1.7% more costly to import into Germany. For instance, cocoa beans were more than three times pricier than in the previous year (+208.0%), and they were also 42.4% pricier than in March. Concurrently, coffee bean prices declined by 7.3% compared to April 2023. Conversely, tomatoes were 30.5% cheaper, and wheat was 18.0% less expensive. An average of 1.5% more was charged for consumer goods compared to the same period last year.
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The decrease in German import prices in April, specifically a 1.7% drop compared to the previous year, was the smallest decline in import prices recorded over the last 14 consecutive months. Additionally, the year-on-year import price changes varied across different categories, with energy imports seeing a significant drop, while agricultural products and certain consumer goods experienced an increase.
