Germany: Prices for Imports Decreased Drastically
Lower cost for energy imports such as natural gas have led to the sharpest drop in import prices since October 2009.
Lower cost for energy imports such as natural gas have led to the sharpest drop in import prices since October 2009.The index of German import pricessaw the largest decrease in April since the global financial crisis in 2009, amid cheaper energy prices. Imports fell by an average of seven percent compared to the same month last year, the German Statistical Office announced on Wednesday.
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This was the sharpest drop in import prices since October 2009, when the financial crisis triggered a global economic slump.
"The decisive factor for the decline is primarily a base effect due to the high price level in the previous year because of the war in Ukraine," the statisticians explained the trend.
Economists polled by the Reuters news agency had expected a drop of only 5.8 percent. March had seen the first year-on-year decline since January 2021 at minus 3.8 percent.
Cheaper energy prices a significant factor
Currently, energy imports were 31.8 percent cheaper than in April 2022. A drop in the price of imported natural gas — which fell by 38.7 percent — contributed to this. Coal, electricity petroleum products and oil were also considerably cheaper.
In contrast, prices for imported consumer goods rose by 4.6 per cent. Prices for fruit and vegetable products as well as meat and meat products rose particularly sharply.
The German Statistical Office is set to publish a first official estimate on the cost of living and prices for consumer goods on Wednesday afternoon.
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los/kb (dpa, Reuters)
(The above story first appeared on LatestLY on May 31, 2023 01:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).