Germany's import prices rise 0.2% in July, annual rate accelerates to 6.8%

• Germany's import prices increased by 0.2% month-on-month in July
• The previous month's reading was a decline of 0.7%
• On an annual basis, import prices rose 6.8% in July
• The prior annual figure was 6.1%

German import prices are still trending higher, with the annual rate reaching 6.8%. The primary driver remains energy prices, which have surged year-on-year due to the US-Iran conflict. Beyond that, there is a spillover effect on raw materials and metals, pushing overall import prices above the year-ago level.

Excluding energy, import prices in July this year were 4.8% higher than in July last year. On a monthly basis, after excluding energy, import prices rose 0.1% in July compared to June.

For context, energy import prices are 26.4% above their year-ago level, while non-ferrous metals and semi-finished products are 26.0% higher. These two categories exhibit a major divergence from last year's conditions.

The monthly breakdown reveals the following changes in import prices:

• Intermediate goods: down 0.5%
• Energy: up 1.3%
• Capital goods: up 0.4%
• Consumer goods: up 0.2%
• Agricultural goods: up 2.3%