German import prices posted their biggest annual rise in nearly 8 years in June, driven by a 50 per cent rise in energy costs and highlighting the risks of inflation in Europe's largest economy.
The Federal Statistics Office reported today that import prices rose 1.5 per cent month-on-month in June and 8.9 per cent compared to the same month last year, the sharpest increase since November 2000.
The price of energy related imports surged 49.7 per cent on the year, underscoring the limits of a strong euro in dampening the cost of imports.
Coal prices rose 60.3 per cent on an annual basis. Excluding oil and oil products, import prices rose a comparatively modest 0.5 per cent on the month and 2.5 per cent on the year.
Annual German inflation accelerated to 3.3 per cent in June, its highest level in nearly 15 years in June, fuelled by a surge in oil prices. That helped push euro zone inflation up to a record high of 4 per cent last month.
The annual rate in Germany is expected to ease to 3.2 per cent when preliminary July inflation data is published next week, according to a Reuters poll.