- Import prices +0.7% vs +0.4% m/m expected
- Prior +1.2%
This represents another solid mark up in German import prices, with the annual estimate even jumping to +6.8% compared to the same month last year. For some context, this was the strongest year-on-year increase since December 2022.
Once again, it's all about the US-Iran conflict as the war is impacting global energy markets and supply chains. That is seeing import prices for intermediate goods and energy become significantly more expensive.
While energy prices were just up by another 0.1% compared to April, they are up 37.2% compared to May last year. The last time import prices for energy rose more sharply compared to the same month of the previous year was back in October 2022.
The other details show a marked increase in import prices for intermediate goods (+1.6% on the month), capital goods (+0.4% on the month), and in both durable and non-durable consumer goods (+0.1% on the month).
So even if you exclude energy prices from the equation, German import prices for May were still up by 0.7% compared to April.
