FX.co ★ German Inflation Rises Amid Renewed Energy Pressures

Germany’s annual inflation rate inched up to 2.9% in August 2026, its highest level since April, though slightly below market expectations of 3.0%, according to preliminary estimates. The rise was mainly driven by a renewed spike in energy prices, with energy inflation accelerating to 10.5% from 8.3% in July amid heightened US–Iran tensions and higher crude oil prices. By contrast, services inflation eased to 2.8% from 2.9%, and food inflation slowed sharply to 0.1% from 0.4%. Core inflation, which excludes energy and unprocessed food, remained steady at 2.4%. The EU-harmonized inflation rate also climbed to a four-month high of 2.9%, coming in below the 3.1% forecast but still significantly above the ECB’s 2.0% target.