Germany's import prices see the biggest yearly drop since November 1986

Posted on October 6, 2023   |  

In August, Germany experienced its largest import price drop since November 1986, with a significant 16.4% year-on-year decrease.

Import prices in August 2023 grew by 0.4% compared to the previous month, marking the end of a continuous decline that has persisted since September 2022.

Lower import prices were mainly due to significantly cheaper energy costs, with energy imports in August 2023 being 54% less costly than in August 2022, although they were 4.1% more expensive than in July 2023.

Export prices in August 2023 also saw a notable year-on-year decline of 5.1%, but they grew by 0.1% compared to the previous month.

Germany's reliance on imported goods means that the impact of lower import prices on overall inflation tends to have a delayed effect. 

Imported intermediate goods were 9.7% less expensive in August 2023 than in August 2022, and imported agricultural product prices were 1.5% lower year-on-year.