Sharp increase in German import prices in August due to the Iran war

The prices for goods imported into Germany have risen more than expected due to the Iran war. Compared to the previous year, import prices rose by 8.3 percent in August, as the Federal Statistical Office in Wiesbaden announced. “This was the strongest year-on-year increase since December 2022,” the statisticians wrote. Economists had expected an increase of 8 percent.

The increase in energy prices once again had the greatest impact on import prices, with an increase of 43.0 percent (plus 7.5 percent compared to July 2026). Intermediate goods also rose in price by 11.0 percent (plus 0.6 percent compared to July).

Compared to the previous month, the import price index rose by 1 percent in August, which is also more significant than expected. Import prices also tend to influence consumer prices, which the European Central Bank (ECB) bases its monetary policy on.

Since the German economy imports many raw materials from abroad, import prices also have an influence on general inflation. Record prices for diesel and gasoline could push the German inflation rate above the 3.0 percent mark in September, which would be the highest level since the end of 2023. The Federal Statistical Office will present data on this this Wednesday.