German Inflation Accelerates to 2.9% in April

Germany’s consumer price inflation rose to 2.9% year-over-year in April 2026, up from 2.7% in March and slightly below market expectations of 3%, according to preliminary data. This marks the highest rate since January 2024, primarily driven by a 10.1% surge in energy prices linked to the Iran war. Food inflation also ticked up to 1.2% from 0.9%, while services inflation eased to 2.8% from 3.2%. The core inflation rate, excluding food and energy, fell to 2.3%, its lowest level since June 2021. Meanwhile, the EU-harmonized annual inflation rate increased to 2.9%, the highest since January 2024 and well above the European Central Bank’s 2% target.

Germany’s annual inflation rate climbed to 2.7% in march 2026, confirming preliminary estimates and accelerating from 1.9% in February. It marked the highest level since January 2024, largely driven by a sharp rebound in energy prices, which climbed 7.2% amid surging fuel (20%) and light heating oil (44.4%) costs. The spike reflects ongoing pressures linked to the prolonged Middle East conflict and developments in global crude oil markets. Goods inflation picked up to 2.3%, supported by higher prices for consumer goods (3.4%) and durable goods (0.5%). Food price growth eased to 0.9% from 1.1%, as a steep decline in fats and oils (-17.6%) offset notable increases in sugar, jam, honey, and confectionery (6.1%). Services inflation strengthened to 3.2%, with significant rises in social services (7%) and combined passenger transport (6.2%). Meanwhile, core inflation edged down to 2.3% from 2.5%. On a monthly basis, CPI climbed 1.1% from 0.2% in February, in line with initial estimates.

Germany’s inflation rate climbed to 2.7% year-over-year in March 2026, up from 1.9% in February and matching market forecasts, according to a preliminary estimate. This marks the highest level since January 2024, driven by a 7.2% spike in energy prices, the first yearly increase since December 2023, amid the ongoing Middle East conflict. Services inflation held steady at 3.2%, while core inflation, which excludes food and energy, remained at 2.5%, and food inflation eased to 0.9% from 1.1%. The harmonized CPI, closely watched by the ECB, also rose to a 14-month high of 2.8%, keeping both measures above the ECB’s 2% target.