Strongest price decline since 1986
According to the Federal Statistical Office (Destatis), import prices decreased by 16.4 percent in August 2023 compared with August 2022. This was the sharpest year-on-year price decline since November 1986, it said, while compared with the previous month of July, import prices rose by 0.4 percent for the first time since September 2022.
According to the Federal Statistical Office, the decisive factor for the decrease in import prices is the base effect, owed to the high prices in the previous year after the start of the Russia-Ukraine conflict.
Energy prices become more favorable
Energy prices are a major contributor to the decline in the overall index, according to the Federal Statistical Office. Prices of energy imports decreased by 54.0 percent in August 2023 compared to August 2022. However, compared to July 2023, prices increased by 4.1 percent. Natural gas had the largest impact, with a 73.4 percent decrease in prices compared to the same month last year. Compared with July 2023, these decreased by 4.4 percent.
If energy prices are not included in the calculation, import prices in August 2023 were 3.4 percent lower than in the same month a year earlier and 0.3 percent lower than in the previous month, according to Destatis.
Consideration of the individual goods classes
Imported intermediate goods were 9.7 percent cheaper compared with August 2022.
Capital goods prices were 2.5 percent more expensive year on year. Consumer goods prices were up 0.5 percent in August 2023 compared with August 2022.
Decreased export prices
Export prices in August 2023 decreased by 5.1 percent year-on-year. According to Destatis data, this was the sharpest decline since 1962. Compared with July 2023, they remained almost constant, increasing by 0.1 percent.
According to Destatis, energy export prices in August 2023 are 59.7 percent lower than a year earlier. However, they increased by 9.7 percent compared to July 2023. There was a sharp 73.8 percent year-on-year decline in natural gas prices. Compared to July 2023, natural gas was exported 3.3 percent more expensive.
Compared to June 2022, exported intermediate goods prices decreased by 4.8 percent. In contrast, capital goods were exported 3.5 percent more expensive and consumer goods 2.1 percent more expensive than a year earlier.