Germany's import price index rose sharply in March

As reported by the Federal Statistical Office (Destatis), the index of import prices increased by 6.9% in March 2021 compared with the corresponding month of the preceding year. This has been the highest year-on-year-change since April 2011 (+7.7%). In February 2021 and in January 2021 the annual rates of change were +1.4% and -1.2%, respectively. From February 2021 to March 2021 the index rose by 1.8%.

Energy imports were 56.7% more expensive in March 2021 than in March 2020. This high rate of annual change derives from the very low prices in March 2020, which were caused by a corona related drop of demand and a strong surplus of supply throughout Europe. The largest influence on the year-on-year rate of energy price increase had crude oil with a plus of 100.5%, natural gas with a plus of 35.8 % und mineral oil products with a plus of 36.6 %. In addition, the price of electricity increased significantly by 113.6%.

The index of import prices, excluding crude oil and mineral oil products, increased by 3.8% in March 2021 compared with March 2020 and in comparison with February 2021 it rose by 1.4%.

The index of export prices increased by 2.2% in March 2021 compared with the corresponding month of the preceding year. This has been the highest year-on-year-change since April 2017 (+2.6%). In February 2021 and in January 2021 the annual rates of change were +0.7% and +0.1%, respectively. From February 2021 to March 2021 the index rose by 0.8%.