Germany’s annual inflation rate climbed to 2.7% in march 2026, confirming preliminary estimates and accelerating from 1.9% in February. It marked the highest level since January 2024, largely driven by a sharp rebound in energy prices, which climbed 7.2% amid surging fuel (20%) and light heating oil (44.4%) costs. The spike reflects ongoing pressures linked to the prolonged Middle East conflict and developments in global crude oil markets. Goods inflation picked up to 2.3%, supported by higher prices for consumer goods (3.4%) and durable goods (0.5%). Food price growth eased to 0.9% from 1.1%, as a steep decline in fats and oils (-17.6%) offset notable increases in sugar, jam, honey, and confectionery (6.1%). Services inflation strengthened to 3.2%, with significant rises in social services (7%) and combined passenger transport (6.2%). Meanwhile, core inflation edged down to 2.3% from 2.5%. On a monthly basis, CPI climbed 1.1% from 0.2% in February, in line with initial estimates.