Germany’s annual inflation rate rose to 3.3% in September 2026, its highest level since December 2023 and above market expectations of 3.2%, according to preliminary estimates. The increase was driven by a renewed surge in energy inflation, which accelerated to 14.9%, its highest since February 2023, amid stalled US-Iran negotiations and higher crude oil prices. Food inflation also picked up to 0.4% from 0.1%, while services inflation eased 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 more than expected to 3.3%, its highest since late 2023 and well above the ECB’s 2% target.