Decline in German Import Prices Continues in November 2023

In November 2023, Germany experienced a 9.0% year-on-year drop in import prices, according to a report by the Statistisches Bundesamt (Destatis). This follows a trend of consecutive declines, influenced significantly by a base effect resulting from substantial price increases in the previous year. Notably, energy imports played a pivotal role, witnessing a substantial 31.7% decrease compared to November 2022. However, excluding energy prices, import prices were 2.9% lower than the same period last year.

The report also highlighted specific price changes in various categories. Imported intermediate goods saw an 8.0% decline, while consumer goods and capital goods recorded marginal changes. In contrast, imported agricultural goods experienced a 1.2% increase in prices.

Additionally, export prices in November 2023 dropped by 2.2% compared to the previous year, influenced by decreases in energy exports, agricultural goods, and intermediate goods. The ongoing decline in both import and export prices is expected to be a key economic indicator, with the indices transitioning to a new base year in January 2024.

These developments in import and export prices provide insights into Germany’s economic dynamics, reflecting global market conditions and the impact of energy price fluctuations on trade.