Monday Markets Mail (CW 48)

German import prices rise sharply

[1638284837108519.jpg]
Berlin (APA/Reuters) - The price explosion for oil and gas is making German imports more expensive than at any time since the second oil crisis in the early 1980s. Import prices rose 21.7 percent in October compared with the same month last year, the Federal Statistical Office said on Friday. There had been a similarly high rate during the 1980 oil crisis in the wake of Iran's Islamic Revolution, when a figure of 21.8 percent was reached in January of that year.

Economists surveyed expected an increase of only 19.6 percent. The increase had been 17.7 percent in September and 16.5 percent in August.

Experts expect that the increased costs of imports will also have an impact on consumer prices. Rising oil and fuel prices had already caused the inflation rate to climb to 4.5 percent in October, the highest level in 28 years.
The Bundesbank expects this figure to reach almost six percent in November.

 The sharp rise in import prices is also primarily due to the rapidly increasing cost of energy, which rose by 141.0 percent compared with October 2020. The price increase for natural gas was particularly high at 193.9 percent, while the price of crude oil increased by 105.9 percent. Import prices for imported hard coal increased by 213.2 percent.

 Export prices also rose sharply. According to the statistics office, the corresponding index was 9.5 percent higher in October than a year earlier.