German import prices fall by 9% - Energy prices are primarily responsible

German import prices fall by 9% - Energy prices are primarily responsible

According to a report by finanzmarktwelt.de,

German import prices fell by 9% year-on-year in November 2023. These sharp declines are primarily due to a base effect caused by the high price increases in the previous year. Prices fell particularly in the energy sector, with natural gas having the greatest impact on the annual rate of change. Compared to the same month last year, other imported energy sources were also significantly cheaper, which led to an average decline in import prices excluding energy of -2.9%.

Natural gas prices in November 2023 were 47.0% lower than November 2022, but increased 16.2% month-on-month. Similar trends can also be seen in hard coal, electricity, mineral oil products and petroleum.

This development can have a significant impact on the market and the financial industry. Due to the decline in import prices, particularly in the energy sector, this effect is likely to have a lower price impact on consumer prices (inflation). In addition, companies that rely on imported raw materials and energy sources could benefit from lower import prices. This could in turn strengthen their competitiveness in the market and contribute to long-term growth in the economy.

Overall, it can be assumed that the current developments in German import prices will influence the economy and the market in different directions. It remains to be seen how the situation will develop in the coming months.