The decline in the prices of goods imported into Germany accelerated further in July. Import prices fell by 13.2 percent compared to the same month last year, as the Federal Statistical Office announced on Wednesday in Wiesbaden. It is the sharpest decline since January 1987. Last year, on the other hand, import prices rose by more than 30 percent at times. The decisive factor was the Ukraine war, which had made energy and raw materials much more expensive.
The statistics office explains the current price decline primarily with a so-called base effect, because prices rose so sharply in the previous year.
Import prices also influence consumer prices, on which the European Central Bank (ECB) bases its monetary policy. In the fight against high inflation, the ECB has raised its key interest rates sharply since the summer of 2022. However, the central bank has recently largely left the further course open. Your next interest rate decision is due in mid-September. (dpa)