Wholesale prices in Germany soar due to war's impact on energy, raw material

Germany's wholesale prices soared by 4.1% in March on a yearly basis due to the conflict in the Middle East, which resulted in higher wholesale prices of energy products and raw materials, in particular.

The wholesale inflation increased from 1.2% to 4.1% while prices for mineral oil products jumped by 17.8% in March, after declining by 3.9% in February, Destatis' data showed.

On a monthly basis, wholesale prices also posted an increase of 2.7% and mineral oil products' price hiked by 18.8% from February to March.

Destatis said: "The increase in prices in the wholesale of non-ferrous ores, non-ferrous metals and non-ferrous semi-finished metal products (+48.4% on March 2025) also had a considerable impact on the development of prices compared with the same month of the previous year.

"In addition, higher prices were recorded in the wholesale of sugar, confectionery and bakery products (+6.1%) and in the wholesale of tobacco (+5.9%)."