Import Prices: Germany records biggest annual increase in 40 years

Germany has recorded its biggest annual increase in import prices since 1981.

Prices rose by 11.8 percent year-on-year in May 2021, accelerating from a 10.3 percent in the previous month and beating market forecasts of an 11.3 percent gain.

This mainly reflects the latest re-opening efforts and a low base year.

Energy cost jumped by 99.5 percent, mainly on the back of crude oil (135.0 percent).

In addition, the prices for imported intermediate goods rose by 15.4 percent, boosted by iron ore (83.6 percent), copper (65.1 percent), non-ferrous metal ores (46.6 percent), and plastics in primary forms (42.9 percent).

The prices for agricultural goods were 7.5 percent higher than in May 2020, led by rises in natural rubber (52.2 percent), green coffee (22.2 percent) and grain (18.2 percent).

On a monthly basis, import prices jumped by 1.7 percent in May, also beating expectations of 1.5 percent.

Source: Trading Economics