German inflation reached 2.9% in April, official figures confirmed on Tuesday, as the war in Iran continued to drive up energy prices.
The inflation rate has risen to its highest level since January 2024, the Federal Statistical Office said.
"Overall inflation increased for the second consecutive month as a result of another rise in energy prices that was due to the Iran war," said the agency's president, Ruth Brand. "Consumers are particularly feeling the persistent price pressure regarding motor fuels."
Following the US-Israeli attack on Iran on February 28 and Tehran's subsequent blockade of the Strait of Hormuz, a key waterway for the global oil and gas trade, inflation in Germany shot up from 1.9% year-on-year in February to 2.7% in March.
Compared to March, prices in April were 0.6% higher, the Wiesbaden-based authority said.
Energy prices in April were up 10.1% year-on-year, with fuel prices up by 26.2% and light heating oil by 55.1%. In contrast, electricity costs were down 4.5, while district heating fell 1.1%.
In response to the high energy prices, the German government has attempted to reduce costs for motorists with a temporary fuel rebate.
The price surge has not yet been widespread for German consumers, said Silke Tober, inflation expert at the Institute for Macroeconomics and Economic Research (IMK) of the Hans Böckler Foundation.
Inflation in services has fallen, she noted, and the rise in food prices has been moderate. “If the war in Iran is brought to an end and the Strait of Hormuz is opened in the coming weeks, the price of crude oil is likely to fall significantly, and with it inflation.”
