Germany’s import prices increased at the fastest pace in almost a decade in March largely due to higher energy prices, Destatis reported on Thursday.
Import prices grew 6.9 percent year-on-year in March, much faster than the 1.4 percent rise in February. This was the fastest growth since April 2011, when prices advanced 7.7 percent and also higher than economists’ forecast of 6 percent.
The acceleration in import price inflation was driven by the 56.7 percent rise in energy prices. Excluding energy, import price inflation was only 3 percent.
Energy prices were extremely low in the comparable month last year when demand fell significantly across Europe due to the Corona crisis, while at the same time there was a strong excess supply.
Month-on-month, import prices advanced 1.8 percent after climbing 1.7 percent in February. Economists had forecast a monthly growth of 1 percent.
Data also showed that export prices grew at a faster pace of 2.2 percent in March after rising 0.7 percent a month ago. On month, export prices rose 0.8 percent compared to 0.5 percent in February.