FX.co ★ German Inflation Surges in March as Energy Prices Rebound

Germany’s annual inflation rate rose to 2.7% in March 2026, up from 1.9% in February and in line with market expectations, according to a preliminary estimate. This is the highest reading since January 2024 and was mainly driven by a 7.2% jump in energy prices—the first year-on-year increase since December 2023—against the backdrop of the ongoing conflict in the Middle East. Service-sector inflation was unchanged at 3.2%, while core inflation, which excludes food and energy, held steady at 2.5%. Food inflation edged down to 0.9% from 1.1%. The harmonized index of consumer prices (HICP), closely monitored by the ECB, also climbed to a 14-month high of 2.8%, leaving both headline inflation and the HICP above the ECB’s 2% target.