International Economic
German inflation accelerates as energy prices soar
By Abigail Townsend
Date: Friday 10 Apr 2026
(Sharecast News) - German inflation was confirmed as the highest in more than two years on Friday, following a sharp increase in energy prices.
According to Destatis, the Federal Statistics Office, the consumer price index in March was up 2.7% year-on-year, in line with both expectations and earlier estimates. It is the highest level since January 2024.
The harmonised index of consumer prices was 2.8%, also in line with consensus. All European Union members use the same methodology to calculate HICP.
In February, CPI stood at 1.9% and HICP at 2%.
Ruth Brand, Destatis president, said: "The significant increase in prices of energy products is driving up inflation. In particular, motor fuel and heating oil prices have risen sharply for consumers since the start of the Iran war."
Energy product prices were 7.2% higher, the first year-on-year increase since December 2023. It was also in sharp contrast to February 2025, when prices fell 1.9% year-on-year.
Within that, motor fuels soared 20% and heating oil 44.4%. Helping to offset the spikes was a fall in electricity prices, down 4.5%, primarily due to measures implemented by the German government, such as a reduction in transmission network charges.
Global energy prices have soared on the back of war in the Middle East, which has seen the vital Strait of Hormuz closed to tankers and refineries either shuttered or damaged. The tentative ceasefire between the US and Iran, agreed this week, has helped dampen prices, but they remain elevated.
Destatis noted that food prices rose 0.9% in March, below February's 1.1% increase.
Core inflation, which strips out more volatile food and energy prices, was 2.5%. It has been at that level since the start of the year.
Month-on-month, HICP was up 1.2% and CPI 1.1% in March, as expected.
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