Germany's annual inflation rate accelerated to 2.8% in July 2026, confirming preliminary estimates, up from 2.3% in June. It was the highest reading since April, driven by a sharp rise in energy inflation to 8.3% from 3.4%, as renewed Middle East tensions pushed oil prices higher. Meanwhile, services inflation eased to 2.9% from 3.1%, while food inflation remained unchanged at 0.4%. Core inflation, which excludes energy and unprocessed food, inched down to 2.4% from 2.5%. On a monthly basis, consumer prices rose 0.8% in July, rebounding from a 0.3% fall in June. The EU-harmonized inflation rate also accelerated to 2.8%, its highest level in three months and well above the European Central Bank's 2.0%