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Economic CalendarInflation Data

German Inflation Rate Confirmed at 4-Month High

Germany’s annual inflation rate accelerated to 2.9% in August 2026, confirming preliminary estimates, up from 2.8% in July. It was the highest reading since April, driven by a sharp rise in energy inflation to 10.5% from 8.3%, as renewed Middle East tensions pushed oil prices higher. This was the biggest increase in energy prices in over three years, with motor fuel surging 27.7% (23.0% in July), while heating oil jumped 49.6%. Meanwhile, services inflation slowed to 2.8% from 2.9%, while food inflation eased to 0.1% from 0.4%. Core inflation, which excludes energy and unprocessed food, was unchanged at 2.4%. On a monthly basis, consumer prices rose 0.2% in August, easing from a 0.8% gain in July. The EU-harmonized inflation rate also accelerated to 2.9%, its highest level in four months and well above the European Central Bank’s 2.0% target.

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