High fuel prices due to the Iran war led to a renewed rise in inflation in April. Germany's inflation rate climbed to 2.9% in April 2026, marking the highest level since January 2024, according to official data confirmed by the Federal Statistical Office (Destatis) in Wiesbaden. The increase represents a continuation of the upward trend that began in February 2026, when inflation stood at 1.9%, before rising to 2.7% in March. Consumer prices rose 0.6% compared to the previous month of March 2026.
Ruth Brand, President of the Federal Statistical Office, attributed the acceleration in consumer prices to the ongoing impact of the Iran conflict on global energy markets. The war has driven significant increases in fuel costs for the second consecutive month, creating noticeable pressure on household budgets across Germany.
Energy products experienced a substantial price increase of 10.1% compared to April 2025, primarily driven by developments in the crude oil market related to the Iran conflict. Fuel prices showed particularly dramatic growth, rising 26.2% year-over-year. Month-over-month, energy prices increased by 2.1%, with consumers facing notable price jumps of 4.3% for fuel overall and 6.1% specifically for diesel.
However, the Federal Statistical Office noted that these increases remain less severe than those experienced immediately following the outbreak of the Ukraine war. Light heating oil recorded the steepest increase among energy products, soaring 55.1% compared to the previous year and 4.7% from March to April.
Despite this, its limited share in household expenditure meant overall household energy costs actually decreased by 0.3% year-over-year. Electricity prices fell 4.5%, natural gas declined 3.0%, and district heating dropped 1.1%, partly due to government relief measures implemented at the start of 2026. The most recent fuel tax reduction measures only took effect on May 1, 2026, and therefore did not impact April figures.
Food prices increased at a below-average rate of 1.2% compared to April 2025, with significant variations across categories. Sugar, jam, honey and other confectionery items rose 6.6%, while chocolate specifically increased 9.7%. Fish and seafood products climbed 3.7%, and both meat products and fruit rose 3.6%. Eggs showed a sharp increase of 14.6%. Month-over-month, food prices rose moderately by 0.4%, with fresh vegetables up 4.4% and potatoes increasing 3.3%, while fresh fruit declined 1.0%.
Conversely, consumers benefited from substantial price reductions in cooking fats and oils, which fell 13.9% overall. Butter prices dropped dramatically by 25.4%, while olive oil declined 8.9%. Potatoes became 14.4% cheaper year-over-year, and dairy products fell 5.6%. Non-alcoholic beverages increased 4.1%, with coffee, tea and cocoa rising 11.2%. Tobacco products climbed 6.2% compared to the previous year.
Services prices increased 2.8% year-over-year, marking the first time in years that service sector inflation fell below the overall inflation rate. The most significant price increases occurred in social services facilities, which rose 6.8%, and combined passenger transport services, up 6.2% due in part to the Deutschland ticket being more expensive than the previous year's offering.
Vehicle maintenance and repair costs climbed 5.0%, while leisure and cultural services increased 3.9%. Restaurant services and water supply services both rose 3.2%. Net cold rents, a significant component of household budgets, rose 1.8% compared to the previous year. Package holidays provided relief for consumers, declining 3.5% year-over-year and 2.9% from March to April. Flight tickets also became 3.2% cheaper on a monthly basis.
The core inflation rate, which excludes food and energy prices, stood at 2.3% in April 2026. Inflation without energy measured 2.2%, while the rate excluding heating oil and fuel reached 1.9%. Overall goods prices increased 2.9%, with consumer goods rising 4.2% and durable goods up just 0.6%. Household appliances declined 2.4%, while consumer electronics dropped 6.1%, providing some relief in technology-related purchases.
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