Inflation in Germany rises to 2.9% since war with Iran

2026-04-30 08:04:00, Kosova & Bota CNA

The war with Iran has significantly increased the cost of living in Germany. The latest data shows that the cost of living crisis has not yet abated. In April, the inflation rate was 2.9%.

Price increases caused by the war with Iran continued to push up Germany's inflation rate in April. Consumer prices were 2.9% higher than in the same month last year, after 2.7% in March, the Federal Statistical Office said on Wednesday, based on provisional figures.

The last time inflation reached this level was in January 2024; the last time the rate was higher than 3% was in December 2023, at 3.7%. The cost of energy and fuel for households was at least 10.1% higher in April than a year earlier. Since March, energy prices in Germany had risen rapidly by 7.2%.

Consumer prices rose by a total of 0.6% between March and April, statisticians announced.

Strait of Hormuz: supply chains blocked

There is currently no oil coming through the Strait of Hormuz, through which a fifth of global oil consumption is normally transported. This is causing a shortage, leading to a rise in prices on the world market.

"As long as the supply chain from the Persian Gulf remains disrupted, inflationary pressure will slowly but surely increase," said Ulrich Kater, chief economist at DekaBank. "Whether price increases continue in the second half of the year or subside depends solely on the opening of the Strait of Hormuz."

As high energy costs increase companies' production and transportation costs, there is considerable concern that prices for food, restaurants, and services will continue to rise.

Food prices are rising.

According to data from the statistics office, food price growth accelerated slightly to 1.2% in April. In March, food prices had risen by 0.9%.

Services, restaurants, which have been the main drivers of prices for months, increased by 2.8% in April compared to the same month last year.

Economists estimate that price increases for airline tickets and package holidays have been a decisive factor in this. Core inflation, excluding energy and food - which economists pay particular attention to - fell slightly in April, from 2.5% to 2.3%./ DW