Germany’s annual inflation rate accelerated to 3.3% in September 2026, confirming preliminary estimates, up from 2.9% in August. It was the highest inflation rate since December 2023, mainly driven by a renewed surge in energy inflation, which rose to 14.9%, its highest level since February 2023, amid stalled US-Iran negotiations and higher crude oil prices. Energy prices rose for the third consecutive month, mainly driven by increases in motor fuel prices (37.1% vs 27.7% in August) and heating oil prices (74.9% vs 49.6%). Food inflation also increased to 0.4% from 0.1%, with egg prices rising 15.2% and fresh vegetable prices climbing 12%, while services inflation slowed to 2.7% from 2.8%. Core inflation, excluding energy and unprocessed food, held steady at 2.4%. The EU-harmonized inflation rate also rose to 3.3%, its highest level since late 2023 and well above the ECB’s 2% target. On a monthly basis, consumer prices rose 0.6% in September, accelerating from a 0.2% gain in August.