August -0.7% m/m, +6.6% y/y

MNI survey median: +0.1% m/m, +6.6% y/y
MNI survey range: -0.9% to +1.0% m/m

July +0.8% m/m, +7.5% y/y
June -0.6% m/m, +6.5% y/y
—

FRANKFURT (MNI) – German import prices fell in August, with
declines noted in most major components led by energy, the Federal
Statistical Office reported on Wednesday.

After a brief recovery in July, import prices gave back 0.7% on the
month in August, reducing the annual inflation level to +6.6%.

With Brent crude slipping 5.4% on the month, energy import prices
in August were 3.0% cheaper than in July. Excluding the effects of
energy, core import prices fell 0.1% m/m and were up only 3.0% on the
year.

Since hitting a three-month high of $120.50 in mid-September, oil
prices have trended downwards and were last trading at $111.84.

In its latest Oil Market Report, the International Energy Agency
said that the recent tensions in oil markets could ease in the short
term if supply outages recede.

Over the medium term, weaker global economic growth should dampen
the rise in demand for oil, the IEA noted, adding that its forecasts for
demand could fall as much as 30% this year if activity slows more than
expected.

“This latter case is not our ‘most likely’ prognosis, but the
financial and economic headwinds are nonetheless gathering momentum,”
the agency said.

Intermediate goods import prices decreased 0.2% on the month to
give an annual change of +5.9%. Capital goods imports were stable
between July and August, but were 1.0% lower on the year.

Imported consumer goods dipped 0.1% m/m, due to the 0.3% fall in
durable goods prices, resulting in an annual rate of +2.6%.

Recent indicators suggest that imported price pressures may have
eased further this month.

Companies polled in a recent PMI reported a moderation in cost
pressures in September, which was linked primarily to demand for input
and greater access to raw materials.

Export price inflation came to -0.1% m/m, which cut the annual
increase to 3.2%.

— Frankfurt bureau: +49-69-720 142; email: frankfurt@marketnews.com —

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