German year-on-year import prices jump massively

Prices of goods imported to Germany in November rose 24.7% on the same month a year ago, the Federal Statistical Office (Destatis) said on Thursday.

The figures marked the biggest jump in import prices Germany has seen since a 1974 oil embargo that was triggered by a Middle East conflict.

The November rise exceeds analysts' average forecasts of 22.3% and comes on top of year-on-year rises of 21.7% in October and 17.7% in September. 

The month-on-month rise was 3%, which, although large, is down on the 3.8% registered from September to October.

The rise comes as the coronavirus pandemic continues to wreak havoc on global supply chains and trade.

What sectors are mainly affected?

Imported energy saw the biggest hike, going up 160% compared with a year ago.

Import prices for natural gas almost quadrupled while those for crude oil and mineral oil products more or less doubled.

Electricity went up 360% in comparison with a year ago.

On the plus side, export prices went up 0.8% month on month and 9.9% year on year.

What happened in 1974?

The Yom Kippur war between Israel and a coalition of Arab states in October 1973 prompted oil-producing Arab countries to temporarily cease oil shipments to several countries in retaliation for their support for Israel.

The embargo is seen as the first oil crisis and led to big price increases and global energy disruption in the long term.

Edited by: Farah Bahgat