June: -1.5% m/m, +1.3% y/y
May: -0.7% m/m, +2.2% y/y
April: -0.5% m/m, +2.3% y/y
—
FRANKFURT (MNI) – Import prices in Germany fell for the third
consecutive month in June on the back of ever cheaper energy products,
bringing annual inflation to its lowest level since 2009, the Federal
Statistical Office reported on Thursday.
Deepening May’s decline, June’s 1.5% monthly fall knocked overall
import prices down to their lowest level for the year and the annual
rate to +1.3%, its slowest pace since December 2009.
Brent crude’s 14% drop knocked oil import prices down 10.4% on the
month and 1.5% on the year. Mineral oil products were 8.6% cheaper on
the month, but were unchanged in annual terms. Excluding both
components, the import price index contracted by a more modest 0.2%,
bringing the annual rate to +1.6%.
Oil prices have since climbed back above $100 a barrel, though
remain under pressure, as fears of an escalating Eurozone debt crisis
pushed investors out of risky assets.
After a severe drought in the U.S. helped to push up corn and
soybeans to record highs early last week, forecasts calling for showers,
as well as profit-taking, brought prices back down sharply on Monday.
However, prices for the commodities are likely to remain high in
the near term, with many grain-producing states still experiencing dry
weather.
Intermediate goods imports, often the first to reflect commodity
price trends, were 0.3% cheaper on the month and 0.7% lower on the year.
Capital goods import prices were up 0.1% on the month to give an annual
rise of 1.8%.
Consumer goods also managed a modest rise, gaining 0.3% on the
month to bring the annual rate to +3.6%.
Export prices fell further in June by 0.3%, bringing levels to
four-month lows and reducing the annual rise to 1.4%, the statistics
office added.
— Frankfurt bureau: +49-69-720 142; email: frankfurt@marketnews.com —
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