Highest inflation rate since December 2023

Inflation in Germany rose to 3.3% in September from 2.9% in August, the Federal Statistical Office (Statistisches Bundesamt) said, confirming its earlier estimate. It is the first time since late 2023 that the rate has moved above 3%. The last higher reading was 3.7% in December 2023. Compared with August, consumer prices rose 0.6% in September. Higher inflation reduces purchasing power, and the rise in the inflation rate was driven by energy.

German inflation rate, year on year (%)
2023-123.72026-082.92026-093.3

Fuel and heating oil drive the rise

Fuel became 37.1% more expensive than a year earlier in September, and light heating oil rose almost 75%. Firewood, wood pellets and other solid fuels rose 15.6%. Households paid 14.9% more for fuel and household energy than a year before, the third monthly acceleration in a row and the steepest energy increase since February 2023.

Ruth Brand, president of the Federal Statistical Office, attributed the rise to energy prices:

Energy price developments were once again responsible for the rise in the inflation rate.

— Ruth Brand

She added that the price increase was most visible in petroleum products at petrol stations and in heating oil. The fuel increase is the main component behind the energy figures.

Energy and food price changes, September 2026 vs year earlier (%)
Fuel37.1Firewood, pellets and solid fuels15.6Electricity-5.5Natural gas (excl. operating costs)-2.8District heating-1

Electricity and gas get cheaper

Not all energy prices rose. Electricity fell 5.5% year on year, natural gas (excluding operating costs) fell 2.8%, and district heating fell 1.0%. Food prices rose only 0.4% overall, but some items were much dearer, including eggs, which rose 15.2%. The mix means households paying for fuel face a different picture from those paying for power and gas.

Oil above $100 and the Strait of Hormuz

Since the outbreak of the Iran war, energy has been the main driver of inflation, not only in Germany. Tankers cannot reliably pass the Strait of Hormuz, which is important for global oil and gas trade, and oil prices have risen sharply. Most recently they rose above the $100 mark per barrel (159 litres). Drivers felt this in September as fuel prices at petrol stations reached record levels. A new fuel discount, the Tankrabatt, is meant to bring fuel costs down.