Import prices up by 8.9 percent

In June 2008 prices for imported goods were up by on average 8.9 percent as compared to June last year. According to the Federal Statistical Office, this corresponds to the biggest increase in the annual inflation rate since November 2000. At the same time it becomes evident that annual inflation is increasing at an accelerated pace given that in May and April this year the rates were 7.9% and 5.7% respectively. In June inflation was once more to a great extent a consequence of exorbitant price rises for energy which inreased at an annual rate of 49.7%.

Since May 2008 alone prices for energy have increased by 6.5%. Without taking into account crude oil and mineral oil products the price index for imported goods was up by 2.5% in June 2008 as compared to June 2007.

Prices for iron ores were up by 40.8% in June by annual comparison. Since May 2008 they increased by 1.8% (from May to April 2008: +9.0%, from March to April 2008: +21.9%). Imports of pig iron, steel and iron alloys were 12.6% more expensive by annual comparison and by 2.4% by monthly comparison (from April to May: +5.0%). Prices for non-ferrous metals and semi-finished products thereof, however, fell by 8.7% as compared to June 2007.

The price index for imported goods increased by 1.5% in June as compared to May. The price index for exported goods was up by 2.7% in June 2008 as compared to June last year. In May and April 2008 annual inflation rates had been 2.3% and 2.2% respectively. As compared to May 2008 the price index for exported goods increased by 0.5%. GERMAN