FX.co ★ German Inflation Hits Highest Level Since 2023

Germany’s annual inflation rate climbed to 3.3% in September 2026, its highest level since December 2023 and slightly above market expectations of 3.2%, according to preliminary estimates. The increase was primarily driven by a renewed surge in energy prices, with energy inflation accelerating to 14.9%—the highest rate since February 2023—amid stalled US-Iran negotiations and a rise in crude oil prices. Food inflation also edged higher, increasing to 0.4% from 0.1%, while services inflation eased slightly to 2.7% from 2.8%. Core inflation, which excludes energy and unprocessed food, remained unchanged at 2.4%. The EU-harmonized inflation rate similarly rose more than expected to 3.3%, its highest level since late 2023 and well above the European Central Bank’s 2% target.