German inflation hits 3.3% in September, highest in three years

September 30, 2026 at 05:57 PM2 min

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Germany's annual inflation rate rose to 3.3% in September, the highest level in three years, according to preliminary data from the Federal Statistical Office (Destatis). The increase was driven by a 14.9% surge in energy prices. The reading exceeded market expectations and intensified pressure on the European Central Bank to continue raising interest rates.

Key Facts

Germany's annual inflation rate reached 3.3% in September, up from 2.9% in August and 2.8% in July.
Energy prices in Germany rose 14.9% year-on-year in September, accelerating from 10.5% in August and 8.3% in July.
The European Central Bank raised its deposit rate by 25 basis points to 2.50% on September 10, its second hike of the year.
Eurozone annual inflation stood at 3.2% in August, with Spain at 5.0%, Italy at 4.1%, and France at 3.4%.

Inflation Surge

Germany's consumer price index rose 3.3% year-on-year in September, the highest rate in three years, according to Destatis. On a monthly basis, the CPI increased by 0.6%, while the EU-harmonised index also rose 3.3% annually and 0.6% monthly. Market forecasts had anticipated a 3.1% national CPI and a 3.0% EU-harmonised rate. Core inflation, excluding food and energy, held steady at 2.4%.

Energy Price Pressure

Energy product prices jumped 14.9% compared with September 2025, up from 10.5% in August and 8.3% in July. The acceleration in energy costs was the main driver of the headline inflation increase. The ECB's 2% medium-term target remains far below the current eurozone inflation rate of 3.2% in August.

ECB Policy Outlook

The ECB raised its deposit rate by 25 basis points to 2.50% on September 10, its second increase this year. Following the German inflation data, German government bond yields rose as investors priced in further ECB rate hikes. Analysts expect eurozone inflation to reach 3.5% to 3.6% in September, up from 3.2% in August. Financial markets anticipate continued tight monetary policy and additional tightening steps in the coming months.