(RTTNews) - German import price inflation in July increased at the fastest pace since November 2000 on higher energy prices.

Wednesday, the Federal Statistical Office announced that the import price inflation rose more than expected year-on-year to 9.3% in July, which was the fastest growth since November 2000. Economists were expecting it to climb to 9.2% in July from 8.9% in June.

Compared to the previous month, import prices were up 0.6%, but down from June’s 1.5%. However, monthly increase exceeded the 0.5% growth expected.

Prices of imported coal surged 77.6% annually and crude oil prices jumped 51.6%, in July. Gas prices showed an annual growth of 53.6%. Meanwhile, iron ore prices were up 1.4% on a monthly basis, taking the annual rise to 44.2%. On the other hand, prices of lead, zinc and tin declined in July from the prior year.

Excluding crude oil and mineral oil products, import prices rose 3.5% in July over the prior year.

Meanwhile, export prices increased 3.3% in July from the previous year, faster than the 2.7% in June. July’s export price growth was also the highest annual growth since November 2000. On a monthly basis, the export price index moved up 0.5%, the same as in June.

Driven by the rise in the prices of natural gas, electricity and mineral oil, producer price inflation in July reached the highest level in almost twenty-seven years. Pipeline inflation increased to 8.9% year-on-year in July from 6.7% rise in June.

Annual inflation in the largest eurozone economy is forecast to slow slightly in August after hitting the largest growth since December 1993. The CPI inflation is seen at 3.2% in August, down from 3.3% in July. At the same time, consumer prices are expected to fall 0.2% on a monthly basis.

The Federal Statistical Office is set to release the preliminary inflation data for August later Wednesday.

In July, consumer price annual inflation in Eurozone stood at 4%, slightly below the flash estimate of 4.1%. Inflation is now staying at the highest level since the euro was introduced in 1999 and continued to stay above the European Central Bank, or ECB target, which is to keep inflation rates “below, but close to 2% over the medium term”.

Earlier in a note, economists at BNP Paribas said headline inflation in Eurozone is likely to fall gradually in the near term and start to decelerate more in the fourth quarter, benefiting from favorable energy and food related base effects. This would ultimately permit the central bank to adopt a protracted monetary status quo.

A report released by the statistical office on August 26 confirmed that the German economy shrank for the first time in almost four years. The largest eurozone economy contracted 0.5% sequentially in the second quarter, after expanding 1.3% in the first quarter. The second quarter was characterized by weakness in construction investment and household spending.

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