Germany’s inflation rate rose to 2.9 percent in April, the highest since January 2024, driven by soaring energy prices linked to tensions in the Middle East, official data showed Tuesday.
The increase followed a 2.7 percent rise in March. Energy prices jumped 10.1 percent year‑on‑year, the sharpest gain in more than three years, according to the Federal Statistical Office (Destatis).
“Overall inflation increased for the second consecutive month as a result of another rise in energy prices linked to the Iran war,” Destatis President Ruth Brand said. “Consumers are particularly feeling the persistent price pressure regarding motor fuels.”
Concerns over disruptions to shipments through the Strait of Hormuz have pushed fuel costs higher. Energy prices rose 7.2 percent in March after falling 1.9 percent in February.
To ease the impact, the government temporarily cut fuel taxes by about 17 euro cents ($0.18) per liter for two months, though the measure was not yet reflected in April’s data.
Economists warned the energy shock is spreading to broader consumer prices. Goods prices rose 2.9 percent in April from a year earlier, up from 0.8 percent in February and 2.3 percent in March.
The Munich‑based Ifo Institute said its price expectations index climbed to 31.6 points in April from 25.5 in March, the highest since January 2023, noting that rising energy costs are increasingly being passed on to consumers in manufacturing, hospitality and retail.