EuroWire, WIESBADEN: Germany’s annual inflation rate accelerated to 2.9% in April from 2.7% in March, as a sharp rise in energy prices pushed consumer prices higher again after a softer start to the year. Consumer prices rose 0.6% from March on a monthly basis. Energy prices increased 10.1% from a year earlier, the steepest rise since February 2023, lifting the overall reading to its highest level since January 2024 and keeping inflation above the levels recorded in February and January.
The Federal Statistical Office, or Destatis, said the increase was not broad-based across the basket to the same degree as the headline figure suggested. Core inflation, which strips out food and energy, eased to 2.3% in April from 2.5% in March. Services inflation also slowed to 2.8% from 3.2%, indicating that the renewed rise in the overall rate was driven mainly by energy rather than a wider pickup in underlying consumer prices across Germany’s economy.
Germany’s harmonised inflation rate, which is calculated for comparison across the euro area, stood at 2.9% in April, up from 2.8% in March. That kept the country’s EU-comparable gauge close to 3% even as domestic core pressures moderated. The April reading followed a marked swing in recent months, with national inflation at 1.9% in February before rising to 2.7% in March and then quickening again in April.
Energy drives headline higher
Preliminary data from major German states had already pointed to a firmer national result. Inflation in Bavaria rose to 2.9% in April from 2.8% in March, while Lower Saxony increased to 3.0% from 2.6% and Baden-Wuerttemberg edged up to 2.6% from 2.5%. North Rhine-Westphalia, Germany’s most populous state, held steady at 2.7%. Those readings indicated that the rise in national inflation was broad enough geographically to show up before the federal estimate was published.
The latest data adds to pressure on households and businesses after Germany’s inflation rate had slowed materially from the peaks seen during the energy shock of earlier years. Last week, the German Economy Ministry raised its inflation forecasts to 2.7% for 2026 and 2.8% for 2027, citing higher energy and raw material costs. The ministry also cut its economic growth forecasts, underscoring how price pressures and weaker momentum are combining to weigh on Europe’s largest economy.
Germany underlying pressures ease
Despite the stronger headline reading, the fall in core and services inflation suggested that broader price pressures were still cooling in April. That distinction matters because services and core measures are closely watched as indicators of whether higher costs are spreading more widely through the economy. In March, euro area inflation stood at 2.6%, and Germany remained one of the larger contributors to the region’s overall price trend because of its size and the renewed rise in energy costs.
April’s reading leaves Germany with inflation running above 2% for a fourth straight month and matching the highest annual rate since January 2024. The combination of a 10.1% jump in energy prices, a 0.6% monthly rise in consumer prices and softer core inflation produced a mixed picture in which household costs rose faster, but underlying momentum stayed more restrained. For now, the data shows Germany’s inflation rebound in April was led by energy rather than a broad acceleration across the full consumer basket.