RTTNews - Germany's import prices declined the most in more than two decades in July as energy prices dropped, a report by the Federal Statistical Office or Destatis indicated on Wednesday.

The import price index plunged 12.6% year-on-year in July, after the 11.3% fall in the previous month. Economists had expected a decline of 12.5%. Import prices had grown 8.3% in the same month last year.

The import price decline in July was the biggest since February 1987, when prices dropped 12.6%, the Destatis said. Import prices dropped by 10.4% and 8.6%, respectively in May and April.

Energy import prices dropped 42.9% annually in July, while prices for crude oil and petroleum products declined 45.9%.

On a month-on-month basis, import prices dropped 0.9% in July, in contrast to the 0.4% increase in the preceding month. Economists had expected an increase of 0.8% for July.

At the same time, import prices for crude oil and petroleum products declined 3.7%.

Import prices, excluding crude oil and mineral oil products, dropped 6.8% on an annual basis in July, while it was down 0.6% compared to the preceding month.

Meanwhile, export prices dipped 3.6% year-on-year in July, compared with a 2.9% fall in the previous month. A year earlier, export prices were up 2.6%. On a monthly basis, export prices fell 0.2% in July, after edging up 0.1% in June.

Other price indexes for Germany also have shown declines recently. The consumer price index or CPI had posted its first annual decline since March 1987 in July, while producer prices declined at a record pace for the month.

However, the economy grew slightly for the first time in the second quarter, following four quarter-on-quarter decreases in a row. The gross domestic product or GDP increased 0.3% sequentially in the second quarter, after contracting 3.5% in the first quarter.

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