German producer prices in March see largest monthly jump since August 2022

Germany’s producer prices surged in March, posting the biggest monthly rise since August 2022 as energy costs spiked. Monthly PPI rose 2.5% m/m while the annual rate moved to -0.2% y/y (from -3.3% in February), driven by a 7.5% monthly jump in energy prices and sharp increases in motor fuel and mineral oil products. The report highlights the early pass-through of the Middle East conflict into European price data, with risks that continued disruptions (e.g., Strait of Hormuz) will sustain higher energy costs into April. Markets may react with renewed inflation concerns—pressuring bond markets and weighing on risk assets sensitive to rising input costs—while energy and inflation-sensitive sectors could see more volatility.