German Inflation Hits Highest Level Since 2023

Germany’s annual inflation rate rose to 3.3% in September 2026, its highest level since December 2023 and above market expectations of 3.2%, according to preliminary estimates. The increase was driven by a renewed surge in energy inflation, which accelerated to 14.9%, its highest since February 2023, amid stalled US-Iran negotiations and higher crude oil prices. Food inflation also picked up to 0.4% from 0.1%, while services inflation eased to 2.7% from 2.8%. Core inflation, excluding energy and unprocessed food, held steady at 2.4%. The EU-harmonized inflation rate also rose more than expected to 3.3%, its highest since late 2023 and well above the ECB’s 2% target.

Germany's annual inflation rate accelerated to 2.9% in August 2026, confirming preliminary estimates, up from 2.8% in July. It was the highest reading since April, driven by a sharp rise in energy inflation to 10.5% from 8.3%, as renewed Middle East tensions pushed oil prices higher. This was the biggest increase in energy prices in over three years, with motor fuel surging 27.7% (23.0% in July), while heating oil jumped 49.6%. Meanwhile, services inflation slowed to 2.8% from 2.9%, while food inflation eased to 0.1% from 0.4%. Core inflation, which excludes energy and unprocessed food, was unchanged at 2.4%. On a monthly basis, consumer prices rose 0.2% in August, easing from a 0.8% gain in July. The EU-harmonized inflation rate also accelerated to 2.9%, its highest level in four months and well above the European Central Bank's 2.0% target.

Germany’s annual inflation rate edged up to 2.9% in August 2026, its highest level since April, but below market expectations of 3.0%, according to preliminary estimates. The increase was driven by a renewed surge in energy inflation, which accelerated to 10.5% from 8.3% in July following heightened US-Iran tensions and higher crude oil prices. Meanwhile, services inflation eased to 2.8% from 2.9%, while food inflation slowed to 0.1% from 0.4%. Core inflation, excluding energy and unprocessed food, was unchanged at 2.4%. The EU-harmonized inflation rate also rose to a four-month high of 2.9%, below forecasts of 3.1% but still well above the ECB’s 2.0% target.