Germany’s annual inflation rate rose to 2.7% in March 2026, confirming preliminary estimates and accelerating from 1.9% in February. This was the highest rate since January 2024 and was largely driven by a sharp rebound in energy prices, which increased 7.2% amid surging fuel costs (20%) and light heating oil prices (44.4%). The spike reflects ongoing pressures from the prolonged conflict in the Middle East 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 prices for fats and oils (-17.6%) offset notable increases in sugar, jam, honey, and confectionery (6.1%).
Services inflation strengthened to 3.2%, driven by 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, the consumer price index (CPI) increased 1.1% after a 0.2% rise in February, in line with initial estimates.
