German import prices rose 1.2% month-on-month in April, slightly above the 1.1% increase analysts had expected, following a sharp 3.6% gain in March.
On an annual basis, import prices climbed 5.3% compared to April of last year — the strongest year-on-year increase since January 2023.
The continued rise follows the spike seen in March, with the fallout from the Middle East conflict continuing to push prices higher. Energy costs and prices for intermediate goods have been the primary drivers of the increase.
Energy prices surged 2.8% on the month and were up 31.0% year-on-year. Intermediate goods prices rose 2.4% on the month and 7.8% compared to the same period last year, making these two categories the biggest contributors to April's overall import price increase.
Within intermediate goods, non-ferrous metals and their semi-finished products became significantly more expensive. Prices for imported fertilizers and nitrogen compounds also rose considerably, climbing 7.6% compared to the prior month.
Even stripping out energy, import prices were still up 1.0% on the month and 2.8% year-on-year, pointing to a broader inflationary trend across multiple categories. Capital goods prices increased 0.5%, while both durable and non-durable consumer goods edged up 0.1% each.
Why it matters
April's 5.3% year-on-year rise is the strongest annual increase in German import prices since January 2023, indicating that the upward pressure on import costs has intensified beyond the March spike.
Energy and intermediate goods — up 31.0% and 7.8% year-on-year respectively — are the primary drivers, meaning the price pressure is concentrated in inputs that feed directly into industrial production.
Even after stripping out energy, import prices still rose 1.0% on the month and 2.8% year-on-year, showing that the increase is broad-based across capital goods and consumer goods categories, not limited to energy alone.
