Increased oil prices due to the Iran war: German inflation rate climbs to 2.9 percent in April

The war in the Middle East has made energy significantly more expensive in this country. Household energy and fuel cost a whopping 10.1 percent more in April than a year earlier. In March, energy in Germany had already become more expensive for the first time since December 2023, rising rapidly by 7.2 percent, and inflation rose overall to 2.7 percent. From March to April of the current year, consumer prices rose by a total of 0.6 percent, according to statisticians.

“In April, inflation only rose because of higher energy prices,” said Commerzbank chief economist Jörg Krämer. “But surveys show that companies are reacting quickly to the increase in energy prices The prices for other goods and services will soon also increase significantly.“

Food prices are rising

Because expensive energy increases production and transport costs for companies There is great concern that the prices for food, restaurants and services will continue to rise.

In April, food price increases accelerated slightly to 1.2 percent. In March the increase in food sales was 0.9 percent.

Services such as restaurant visits, which were the biggest price drivers for many months, rose by 2.8 percent in April compared to the same month last year, slightly less than in the previous months. According to economists, price increases for airline tickets and package holidays are likely to have contributed significantly to this.

Many people limit themselves because of high prices

The higher the inflation rate, the less consumers can afford per euro. In surveys, many people are already saying that they can hardly afford the running costs of daily life and that reserves have been used up.

In a Forsa survey commissioned by RTL/ntv, 58 percent of respondents said they had recently restricted themselves in everyday life. Young people under the age of 30 and people with lower incomes save particularly often. In the representative survey, 1005 people were interviewed on April 24th and 27th, 2026.

What does the “fuel discount” mean?

The federal government is trying to provide some relief: Taxes on diesel and gasoline will be reduced by around 17 cents gross per liter from May 1st to June 30th. The oil industry has announced that it will pass this on to drivers – some doubt this. Economists do not believe that this “fuel discount” will sustainably reduce fuel prices. In addition, it only benefits those who drive a vehicle with a combustion engine.

Even before the Iran war, economists expected that the inflation rate in Germany this year would be just above the two percent mark – similar to 2024 and 2025 with 2.2 percent each. But these forecasts have long since become a waste of time. Leading economic research institutes now expect the inflation rate to rise to an average of 2.8 percent this year and to 2.9 percent in 2027.

That would still be far below the record for reunified Germany of 6.9 percent inflation during the Ukraine war in 2022. But the price increases back then are still having an impact today, because many goods have become permanently more expensive. (dpa)