Germany's inflation surges sharply to 2.8%

According to preliminary estimates, annual inflation in Germany accelerated to 2.8% in July 2026. In June, consumer prices were 2.3% higher than a year earlier.

Thus, price growth has noticeably accelerated after several months of decline. Inflation was 2.9% in April, 2.6% in May, and dropped to 2.3% in June. The June figure was confirmed by the German Federal Statistical Office, Destatis.

One of the reasons for the new jump is the expiration of the temporary fuel discount. The reduction in energy tax on gasoline and diesel was in effect from May 1 to June 30 and curbed price increases at the pumps.

The ongoing war with Iran is putting additional pressure on energy costs. In June, energy in Germany was 3.4% more expensive than a year earlier, and motor fuels rose by 11.3%. Meanwhile, in May, energy price growth reached 6.6%, and in April, 10.1%.

Core inflation, which excludes food and energy, was 2.5% in June. This indicated that price pressures persist beyond the energy sector.

The July data are still preliminary and may be refined following the publication of the final report. Detailed statistics will show to what extent fuel, food, goods, and services prices have accelerated.

Source: Tagesschau, Destatis