For July
Provided by: Federal Statistics Office
Official Release: Press Release 

IPI y/y: 9.3%, forecast 9.2%, pr. 8.9%, 7.9% (May), 5.7% (Apr)

Inflation remains to be high in Germany. Import prices rose to an annual rate of 9.3%, the highest in 8 years (November '00). Energy prices continue to dominate the index but July was the month oil prices rose to $147, but then eased. The ECB is caught between seeing the Euro-zone economy stall, but inflation remains a problem. The ECB wont get complacent on inflation at this late stage, but central banks are expecting a moderation in inflation. On the month import prices rose a smaller 0.6%, compared to a 1.5% in June. Let's see if prices peak here. 

From the Release: "As reported by the Federal Statistical Office (Destatis), in July 2008, the index of import prices increased by 9.3% from the corresponding month of the preceding year. This was the highest year-on-year rate of price increase since November 2000 (+10.6%). In June and in May 2008 the annual rates of change were +8.9% and +7.9%, respectively. The index of import prices, excluding crude oil and mineral oil products, was 3.5% above the level of July 2007.

From June to July 2008 the index of import prices rose by 0.6%.
 
The index of export prices increased 3.3% in July 2008 from the corresponding month of the preceding year. This was the highest year-on-year rate of price increase since November 2000 (+3.6%). In June and in May 2008 the annual rates of change were +2.7% and +2.3%, respectively. From June 2008 to July 2008 the index rose by 0.5%."

The Euro rose against the Dollar overnight, capping a 190 pip rally that started at yeasterday's low near 1.4575. At the NY open the pair set an intra-day high at 1.4775.  

For May
Provided by: Federal Statistics Office
Official Release: Press Release

IPI y/y: 7.9%, forecast 6.9%, pr. 5.7% (Apr), 5.5% (Mar), 5.7% (Feb)

German import inflation rose 2.4% in May, the fastest pace in 18 years. The annual pace was 7.9% higher, the strongest annual increase since November of 2000. Higher inflation will bode poorly for a German economy already losing its momentum. Consumers have been increasingly pessimistic as inflation gains eat into their purchasing power. The ECB will respond by hiking rates a quarter of a percentage point, which might cool growth but help limit runaway inflation. Oil is big culprit here, as its price has increased 43% this year. With imports and energy prices climbing consumer inflation is expected to reach 3.3% this month compared to 3% in May. Producer prices jumped to the fastest pace in 2 years and will force companies to pass on some of this cost increases to consumers. The question will be if consumers will still be willing to buy at higher prices.

For April
Provided by: Federal Statistics Office
Official Release: Press Release

IPI y/y: 5.7%, forecast 5.5%, pr. 5.7%

Excluding oil products, the index is up only 1.5% on the year. The pace in April picked up faster than economists had expected, and sustains the issue of elevated inflation.

From the Release: "In April 2008, the index of import prices increased by 5.7% from the corresponding month of the preceding year. In March and in February 2008 the annual rates of change were +5.7% and +5.9%, respectively. The index of import prices, excluding crude oil and mineral oil products, was 1.5% above the level of April 2007. From March to April 2008 the index of import prices rose by 0.9%.

The index of export prices increased 2.2% in April 2008 from the corresponding month of the preceding year. In March and in February 2008 the annual rates of change were +2.2%, each. From March 2008 to April 2008 the index rose by 0.3%."

For February
Provided by: Federal Statistics Office
January's Release: Press Release

IPI y/y: forecast 5.9%, forecast 5.4%, pr. 5.2% (Jan), 3.7% (Dec)

Last release import prices in Germany showed an increase of 0.8% for the January period compared to December, and were up 5.2% compared to January of last year. The report was above expectations, with elevated levels of inflation led higher prices for crude oil.

For January
Provided by: Federal Statistics Office

IPI y/y: 5.2%, forecast 4.7%, pr. 3.7%

Import Prices in Germany increased 0.8% in January compared to December, and were up 5.2% compared to January of last year. The report was above expectations, but the data is in line with recent info showing elevated levels of inflation presenting the ECB with a choice to keep holding rates steady. Higher prices were led by price increases to crude oil. 

"As reported by the Federal Statistical Office (Destatis), in January 2008, the index of import prices increased by 5.2% from the corresponding month of the preceding year. This was the highest year-on-year rate of price increase since August 2006 (+5.5%). In December and in November 2007 the annual rates of change were +3.7% and +3.5%, respectively. The index of import prices, excluding crude oil and mineral oil products, was 0.7% below the level of January 2007. The rise in the annual rate of change was partly due to a base level effect in the energy sector. In this sector, the annual rate of change was +36.3% in January 2008."