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German import prices slightly grew in September

German import prices slightly grew in September, but remain deep in red on annual basis. The index of the import prices dropped for the fifth consecutive month, but slowed its downtrend and the crude oil price starting to stabilize. However, the final figures are above the market expectation, but continue to increase the gap in trade balance. German import prices slightly grew in September by 0.1% on month-on-month basis, against a decrease of 0.2% during the previous month. On annual basis, the index dropped by 1.8%, against the decrease of 2.6% a month earlier and market expectation for decrease of 2.0%.

The index of import prices, excluding the crude oil and mineral oil products dropped by only 1.4% on a year-on-year basis in September.

The German index of export prices dropped by 0.6% yoy in September against a decrease of 0.9% in August and decrease of 1.2% in July. On a sequential basis, the export price index remained unchanged. According to the latest data, the spread between export and import prices is enlarging, which will increase the account surplus on trade balance sheet.

Meanwhile, the index of German consumer confidence dropped to 9.7 points in November, against the value of 10 points during the previous month. The consumer confidence index value of Gfk remained below the market participants, due to continuing fears from Brexit and doubts about stability of economic growth of the country.

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