Iran war drives German inflation rate to highest level since Jan. 2024

Germany's inflation rate climbed to 2.9% in April 2026, its highest level since January 2024, the Federal Statistical Office (Destatis) announced Tuesday.

The rise in overall consumer prices intensified after inflation stood at 2.7% in March 2026 and 1.9% in February.

"Overall inflation increased for the second consecutive month as a result of another rise in energy prices that was due to the Iran war. Consumers are particularly feeling the persistent price pressure regarding motor fuels," said Ruth Brand, president of the Federal Statistical Office.

Compared with March 2026, consumer prices rose 0.6% in April.

Prices for household energy and fuel in April were 10.1% higher than in the same month a year earlier.

Germany's Economy Ministry last month lowered its growth forecasts for 2026 and 2027 while raising inflation projections, citing the impact of higher energy costs and weaker external demand.

German Chancellor Friedrich Merz warned on April 13 that the ongoing Iran war would inflict long-term damage on the global economy, with Germany bracing for prolonged economic strain.

"We will feel the consequences of this war for a long time to come, even after it is over," Merz said during a press conference in Berlin.

Last year, Germany approved a 500 billion euro ($584 billion) infrastructure fund aimed at boosting investment and supporting growth after a prolonged period of economic weakness.