Oil prices affect Germany’s import prices

Oil prices affect Germany’s import prices

Import prices in Europe’s largest economy, Germany, showed the highest rise in the last 4.5 years in March as the cost of oil surged. Germany’s Federal Statistics Office said that import prices advanced 1.3% month on month in March. In year-on-year terms, prices rose 3.8% in March. Oil costs had a huge impact on import prices. Adding to Germany’s woes was an unemployment rate of 12%, which suppressed consumer demand and limited companies’ opportunities to pass along higher costs to customers. Germany’s second-largest steelmaker, Salzgitter AG, disclosed that it will cut steel production by 100’000 tons in the current quarter to keep prices and margins from falling due to slowing demand.