Prior +0.5%The year-on-year reading for December was for a decline of 2.3%, marking the sharpest year-on-year drop since March 2024. And overall in 2025, the annual average for German import prices showed a decrease of 0.3% compared to 2024.The breakdown shows the same story that it has been all year, that being the biggest drag on the overall development was the decline in energy prices. That was the same case for the monthly reading as well, with December reflecting a 4.6% drop in energy prices compared to November. If you strip that out, import prices were actually up 0.3% on the month instead.And looking over to the year-on-year estimate, it would just be a 0.3% decline if you exclude energy prices from the calculations.It’s the same as when we look at the annual average too. For some context, the 0.3% drop in 2025 isn’t as bad as the 1.2% drop in 2024 and 6.5% decline in 2023 before that. But when you strip out energy prices, the import price index was 0.7% higher on average in 2025 than in the previous year.The overall breakdown shows that prices for capital goods were also below the 2024 level in 2025 (-0.2%). In contrast, agricultural goods (+4.3%), consumer goods (+1.9%), and intermediate goods (+0.3%) were on average more expensive than in the previous year.
This article was written by Justin Low at investinglive.com.
💡 DMK Insight
German import prices are down 2.3% year-on-year, and here’s why that matters: This decline signals potential deflationary pressures that could impact the Eurozone’s economic outlook. Traders should be aware that lower import prices might lead to reduced inflation expectations, which could influence the European Central Bank’s (ECB) monetary policy decisions. If the ECB perceives a need to adjust interest rates in response to these trends, it could affect the euro’s strength against other currencies, particularly the USD. Keep an eye on the EUR/USD pair, especially if it approaches key support levels. On the flip side, while this data might seem bearish for the euro, it could also present buying opportunities if traders anticipate a rebound in demand or if the ECB maintains a dovish stance. Watch for any comments from ECB officials regarding future rate hikes or economic forecasts, as these could provide clues on market direction. Overall, the immediate impact could be felt in the forex markets, particularly in the next few trading sessions as traders digest this data.
📮 Takeaway
Monitor the EUR/USD pair closely; a break below key support could signal further weakness in the euro amid declining import prices.






