Oil prices affect Germanys import prices
Import prices in
Europes largest economy,
Germany, showed the highest rise in the last 4.5 years in March as the cost of oil surged.
Germanys 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
Germanys woes was an unemployment rate of 12%, which suppressed consumer demand and limited companies opportunities to pass along higher costs to customers.
Germanys second-largest steelmaker, Salzgitter AG, disclosed that it will cut steel
production by 100000 tons in the current quarter to keep prices and margins from falling due to slowing demand.