FX.co ★ German Inflation Confirmed at Near 3-Year High

Germany’s annual inflation rate rose to 3.3% in September 2026, in line with preliminary estimates and up from 2.9% in August. This marked the highest rate since December 2023 and was largely driven by a renewed surge in energy costs. Energy inflation jumped to 14.9%, the strongest increase since February 2023, reflecting stalled US–Iran negotiations and higher crude oil prices.

Energy prices increased for the third consecutive month, led by sharp rises in motor fuel prices (37.1% vs 27.7% in August) and heating oil (74.9% vs 49.6%). Food inflation also picked up, reaching 0.4% from 0.1% in August. Within this category, egg prices rose 15.2% and fresh vegetable prices 12%. By contrast, services inflation eased slightly to 2.7% from 2.8%.

Core inflation, which excludes energy and unprocessed food, remained unchanged at 2.4%. The EU-harmonized index of consumer prices (HICP) also climbed to 3.3%, its highest reading since late 2023 and well above the European Central Bank’s 2% target. On a monthly basis, consumer prices increased by 0.6% in September, accelerating from a 0.2% gain in August.