Germany’s import price inflation eased less-than-expected in December to the lowest level in just over one-and-a-half years amid a continued slowdown in the energy prices, data published by Destatis revealed on Tuesday.<\/p>\n
Import prices logged a double-digit annual growth of 12.6 percent in December, slower than the 14.5 percent surge in November. Economists had forecast inflation to ease to 12.0 percent.<\/p>\n
Further, this was the slowest rate of growth since May 2021, when prices had risen 11.8 percent.<\/p>\n
On a monthly basis, import prices dropped at a slower pace of 1.6 percent in December, after a 4.5 percent fall in November. This was the fourth successive monthly decline.<\/p>\n
The overall strong inflation in December was still largely driven by a 34.1 percent price increase for imported energy. Import prices for natural gas remain the main reason for the higher energy prices over the last year.<\/p>\n
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Excluding energy prices, import prices were 8.2 percent higher than in December 2021, while they fell 0.7 percent from a month ago.<\/p>\n
In 2022, overall import price inflation stood at 26.3 percent, which was the strongest annual increase since 1974, when prices had grown 28.7 percent. <\/p>\n
Export price inflation also slowed to 10.6 percent in December from 11.6 percent in November. Month-on-month, export prices edged up 0.1 percent, reversing a 0.5 percent fall.<\/p>\n
Read more<\/b>: German Business Confidence At 7-Month High On Stronger Expectations<\/p>\n
Data released earlier this month showed that Germany’s consumer price inflation moderated to 8.6 percent in December from 10.0 percent in November. The easing trend was largely attributed to a slowdown in energy inflation amid the government relief measures.<\/p>\n
Moderation in energy prices was also a boost for entrepreneurs, as producer price inflation slowed to the lowest level in thirteen months at the end of the year. <\/p>\n