FX.co ★ German July Inflation Confirmed at 3-Month High of 2.8%

Germany’s annual inflation rate rose to 2.8% in July 2026, in line with preliminary estimates and up from 2.3% in June. This was the highest rate since April, primarily driven by a sharp increase in energy inflation, which surged to 8.3% from 3.4%, as renewed tensions in the Middle East pushed oil prices higher. Motor fuel prices climbed markedly (23.0% vs. 11.3% in June), reflecting a renewed price increase following the end of the temporary reduction in energy tax on motor fuels on June 30, 2026.

In contrast, services inflation eased slightly to 2.9% from 3.1%, while food inflation was unchanged at 0.4%. Core inflation, which excludes energy and unprocessed food, edged down to 2.4% from 2.5%. On a monthly basis, consumer prices increased by 0.8% in July, rebounding from a 0.3% decline in June and marking the fastest monthly rise since March. The EU-harmonized inflation rate also climbed to 2.8%, its highest level in three months and well above the European Central Bank’s 2.0% target.