Prices of goods imported by Germany decrease 2.5 pct in September

Prices of goods imported by Germany decrease by 2.5 percent in September year on year, the German Federal Statistical Office (Destatis) revealed on Monday.

The decline in import prices was mainly caused by the development of prices for energy which fell by 19.1 percent compared to last year, according to Destatis.

At minus 32.9 percent, natural gas had a big impact on the negative annual rate of change for energy imports to Germany. Excluding energy, the index of import prices in general remained unchanged year on year.

Prices for precious metals and semi-finished products as well as iron ores increased more than 30 percent. However, prices for wood and pulp products imported by Germany fell by more than 17 percent while prices of all intermediate goods in total decreased by 1.1 percent year on year.

At the same time, Germany’s export prices remained at the same level compared to last year.

According to the monthly industry survey on export expectations by the ifo institute for economic research published on Monday, “sentiment among German exporters has become noticeably brighter.”

The increase was “mainly attributable to companies in electrical engineering,” according to ifo. While the export market for the metal industry “remains difficult”, companies in the chemical industry, the automotive sector as well as food and beverage manufacture would expect a “noticeable increase” in exports.

“Despite continuing uncertainty surrounding Brexit, some German exporters are once again optimistic concerning the coming months,” said ifo President Clemens Fuest. “However, this does not yet mean optimism, but rather noticeably less pessimism.”