June data shows a 0.7% monthly drop in German import prices, driven by a 6.6% fall in energy costs amid geopolitical shifts.
German import prices fell 0.7% month-over-month in June, matching expectations but reversing a 0.7% gain in May. The decline was primarily driven by a 6.6% drop in energy prices, linked to a temporary easing in Middle East tensions before the US-Iran ceasefire unraveled later in the month.
Annual import prices remained elevated, up 6.1% year-over-year, reflecting persistent inflationary pressures from supply chain disruptions and higher raw material costs. Excluding energy, import prices rose 0.1% in June, with capital goods up 0.5% and consumer goods up 0.2%, signaling underlying price resilience.
The report underscores ongoing inflation concerns, as recent geopolitical developments threaten to reverse energy price declines and sustain upward pressure on import costs.