German import price index declines unexpectedly in August

Germany’s import price index declined more than expected in August, data released on Tuesday showed.

According to figures released by Destatis, Germany’s statistical office, the import price index fell 1.5% month-on-month, compared with analysts’ expectations for a 1.4% decline and with a 0.7% drop in the previous month.

On a year-on-year basis, the index, which measures the change in price for goods imported by Germany and is a key gauge in distinguishing changes in trade volume versus changes in trade prices, fell 3.1% in August.

The figure was slightly lower than consensus for a 3% decline and sharply below the 1.7% fall registered last month.

On Tuesday, investors in the Eurozone’s largest economy will also analyse a reading on consumer price index for September, which is on tap at 1300 BST.

German inflation is expected to decline to 0.1% year-on-year and is “likely to provide additional oxygen to the ‘will the ECB do more’ debate”, according to analysts at Deutsche Bank.