Inflation in Germany hits highest level since January 2024

The inflation rate in Germany currently sits at 2,9 percent, the highest level seen since January 2024. Which products and services are more expensive?

German inflation hits 2,9 percent

The Federal Statistical Office (Destatis) has confirmed that the inflation rate in Germany grew slightly to 2,9 percent in April 2026. The inflation rate sat at 1,9 percent in February and, due to the US-Israeli attacks on Iran and consequent oil crisis, grew to 2,7 percent in March.

Germany’s inflation rate is calculated based on the consumer price index (CPI), which measures the average price change of all goods and services on sale in the federal republic - everything from bread and rent to a haircut - in comparison to the same month of the previous year.

“The renewed rise in energy prices resulting from the war in Iran has contributed to overall inflation for the second month in a row,” Destatis president Ruth Brand explained, “Consumers are feeling the effects of the ongoing pressure on fuel prices particularly acutely.”

Which products are more expensive?

It is mainly the cost of energy products which has risen in Germany. According to Destatis, energy products were in total 10,1 percent more expensive in April 2026 compared to April 2025. 

But price changes varied greatly for different energy products. The price of heating oil is now 55,1 percent more expensive than in April 2025, but the price of electricity has fallen by 4,5 percent.

Destatis said the fuel tax cut, which took effect on May 1, 2026, has yet to impact the inflation rate. The fuel tax cut means fuel companies will have to pay less tax, which is expected to cost the public purse around 1,6 billion euros. Experts are divided on how much the cut will benefit consumers and how long it may be until any benefits are seen.

The price of food also rose by 1,2 percent compared to April 2025, and by 0,9 percent compared to March 2026. Compared to April 2025, sugar, jam, honey, chocolate and fish are more expensive, but butter, olive oil, potatoes, and dairy products are cheaper. Eggs have seen one of the biggest price rises, up 14,6 percent.

The cost of services has also increased by 2,8 percent compared to April 2025. A vehicle inspection is now 5 percent more expensive, while combined passenger transport services are 6,2 percent more expensive. The cost of rent, excluding heating bills, has increased by 1,8 percent.

IW worsens economic forecast

Back in November 2025, the European Commission forecast that the German economy would grow by 1,2 percent in 2026. In December, the German Economic Institute (IW) issued a more conservative forecast of 0,9 percent growth.

Now, the IW has downgraded its forecast and said annual growth of 0,4 percent is more likely. The institute expects an average inflation rate of around 3 percent for the whole of 2026.