German import prices fell at the fastest pace in more than six years in April on slipping energy prices. Import prices decreased 6.6% on year-on-year basis in April after falling 5.9% in March, while number of economists anticipated a 6.2% decline for April. The 6.6% year –on-year fall in April was the biggest drop since October 2009, when prices slid 8.1% and have been falling since January 2013. Excluding crude and mineral oil products, import prices decreased 4% from same period of last year, and import prices of energy plunged 30.8%. On a monthly basis, the picture of import prices was also worse than expected as prices slid by 0.1% confounding expectations for a 0.3% rise and March's 0.7% gain. Moreover, at the same time, export prices fell 2% annually in April, following a 1.6% decrease in March, and on month-on-month basis, the export price index fell 0.1%.
In addition, a separate report showed that French household consumption expenditure on goods was virtually stable in April 2016. The continent's second largest economy saw its consumers increase their volume of spending by 0.2% last time. Another rise, this time of 0.1% is on the cards. Moreover, expenditures on energy as well as on durables slowed down sharply, while consumption of food products dropped markedly.
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