Germany’s inflation rate rose to 2.9 percent in April, marking the highest level since January 2024, as surging energy prices continued to drive consumer costs upward in Europe’s largest economy, according to official data released Tuesday. This increase follows a 2.7 percent rise recorded in March, with inflation having remained near the 2-percent range for several months prior to the escalation of Middle East tensions in late February.

The Federal Statistical Office (Destatis) attributed the latest rise largely to energy price increases, reporting a 10.1 percent year-on-year jump in April—the sharpest increase in over three years. Energy prices had already risen 7.2 percent in March, following a 1.9 percent decline in February. Ruth Brand, president of Destatis, noted that the overall inflation hike marked a second consecutive month of growth driven by energy prices linked to ongoing conflict in the region. She highlighted that consumers are particularly feeling persistent pressure from higher motor fuel costs.

Fears of disruptions to energy shipments through the Strait of Hormuz amid the conflict have contributed to the surge in fuel prices in Germany. In response to rising fuel costs, the German government introduced a temporary cut in fuel taxes for petrol and diesel, lowering levies by approximately 17 euro cents (around 0.2 U.S. dollars) per liter for two months. However, Brand explained this measure had not yet influenced the April inflation figures, as the tax reduction only took effect in early May.

Beyond energy prices, broader consumer goods inflation also showed signs of accelerating. Destatis data indicated that goods prices climbed 2.9 percent in April compared to the previous year, up from 0.8 percent in February and 2.3 percent in March. Economic analysts have warned that the energy price shock is increasingly affecting overall consumer prices as businesses pass on higher costs.

Supporting this outlook, a recent survey by the Munich-based Ifo Institute reported that price expectations climbed to 31.6 points in April from 25.5 in March—the highest level since January 2023. The institute highlighted that the conflict’s impact on the German economy is growing, with companies in sectors such as manufacturing, hospitality, and retail more frequently transferring rising energy costs to consumers.