German inflation soared to a two-year high of 2.7% in March as a result of surging oil prices due to the war in Iran, the Federal Statistical Office said on Monday.
The preliminary figures showed inflation climbing from 1.9% in February to the highest level since the 2.9% recorded in January 2024.
The 2.7% inflation rate is above the 2% target set by both the German Bundesbank and the European Central Bank for price growth.
Energy prices were the main driver of the rising rate of inflation, accelerating by 7.2% compared to March 2025.
Services were 3.2% higher, while food prices rose 0.9%, the data showed.
Month on month, prices rose 1.1% in total, the Wiesbaden-based agency said.
"The rise in inflation in March is only the beginning," said Jörg Krämer, chief economist at Commerzbank. "Higher energy costs will eat their way through the supply chains in the coming months, unless the war ends quickly."
LATEST POSTS
- 1
Moon rocket and weather are on NASA's side for the first astronaut launch in decades - 2Northern lights chances rise for Christmas as space weather remains unsettled
- 3South Carolina measles outbreak grows by nearly 100, spreads to North Carolina and Ohio
- 47 Moves toward a Sound and Dynamic Way of life
- 5Whale stranded off Germany for days is stuck again
- The German series proving subtitles can be sexy — and wildly addictive
- Moscow accuses Berlin of stifling the opposition
- What’s the shadowy organisation taking Gaza Palestinians to South Africa?
- Noctourism: the new safari travel trend that's changing the wildlife we can photograph in Africa
- German foreign minister backs abandoning EU's unanimity principle
- Scientists solve the mystery of the prehistoric 'Burtele Foot'
- A Manual for Nations with Extraordinary Food
- The gay hockey show no one saw coming — and everyone is suddenly obsessed with
- Favored Organic product for Seniors' Prosperity: Make Your Determination
