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Inflation: Import prices are rising at their highest rate since 1974

2022-05-30T11:32:11.467Z


Imported goods are becoming more and more expensive, prices are rising as sharply as they were last during the oil crisis. The reason: the war, of course - but the effects of the pandemic are also being felt. The ECB now wants to take countermeasures.


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Supermarket in Germany: Higher import prices drive inflation

Photo: Sven Hoppe / picture alliance / dpa

It is the strongest increase since the oil crisis in September 1974: the prices for goods imported into Germany rose by 31.7 percent in April compared to the same month last year.

This was announced by the Federal Statistical Office.

This means that the upward trend in prices in foreign trade will continue.

Import prices had already risen by 31.2 percent in March.

As expected, energy prices rose particularly sharply.

Imported energy was more than 157 percent more expensive than a year earlier.

The biggest price drivers were the gas price, which more than quadrupled year-on-year, as well as the price of imported hard coal.

Crude oil and petroleum products such as gasoline also rose significantly.

But even excluding energy prices, import prices increased by 17.1 percent compared to April last year.

The price increases clearly reflect the consequences of the war in Ukraine.

The prices for fertilizers, nitrogen compounds and grain also rose significantly.

Ukraine is one of the largest grain and fertilizer suppliers in the world.

But other global crises are also reflected in the price increases: Cars and car parts are up 7.4 percent, probably due to the supply chain problems triggered by the corona pandemic.

After a long period of hesitation, the interest rate hike is to come

Import prices represent one of several price levels that affect consumer prices.

The Federal Statistical Office in Germany calculated an inflation rate of 7.4 percent for April, the highest since 1981.

In order to combat the inflation rate across Europe, ECB President Christine Lagarde has announced an end to negative key interest rates by late summer.

Other central banks such as the US Federal Reserve and the Bank of England have already raised their key interest rates.

jlk/dpa

Source: spiegel

All business articles on 2022-05-30

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