- June import prices -0.7% vs -0.7% m/m expected
- Prior +0.7%
This is in contrast to the May estimate but it matches with the decline in energy prices in the run up to the ceasefire deal between the US and Iran at the end of June. Since then, a lot has changed of course and energy prices have shot back higher so I wouldn’t extrapolate much from the report here.
The annual estimate shows that import prices in Germany were still up by 6.1% compared to June last year. So, it still speaks to a material jump in terms of overall prices relative to a year ago. And that is mostly thanks to the conflict in the Middle East disrupting supply chains and leading to higher prices in energy and raw materials.
Looking at the details for June though, prices for intermediate goods fell by 0.1% but energy prices that were the big drag in falling by 6.6% on the month. Meanwhile, prices for capital goods were up 0.5% and consumer goods up 0.2%. So at the balance, German import prices were actually up by 0.1% in June when you exclude energy prices from the equation.
Taking that as it is, the overall picture here doesn’t exactly point to any material let up in terms of price pressures. And with the US-Iran conflict starting back up again in recent weeks, the outlook continues to be rather ominous in the summer and for the later stages of this year.
This article was written by Justin Low at investinglive.com.