FX.co ★ German Import Prices Unexpectedly Drop

Germany experienced an unexpected decline in import prices, which fell by 0.4% compared to the previous year in April 2025. This decrease contrasted with market forecasts predicting a 0.1% increase and reversed a 2.1% rise observed in March. It marked the first annual drop in import prices since October 2024, primarily driven by reduced energy costs. Prices for energy fell considerably by 11.2% year-on-year, with notable decreases in crude oil (-25.3%), hard coal (-23.1%), and mineral oil products (-19.0%). Additionally, declines were recorded in intermediate goods (-0.1%) and capital goods (-0.2%). Conversely, consumer goods saw a price increase of 2.6%, with non-durable goods up by 3.3%, while durable goods remained stable. Excluding energy factors, import prices rose by 0.8% compared to the previous year. On a monthly basis, import prices dropped by 1.7% in April, marking the steepest decline since April 2020, following a 1.0% decrease in March, and falling short of market predictions of a 1.4% reduction.