Inflation in Germany is increasing and is expected to reach 2.7 percent in March. This is according to figures from the German statistics office Statistisches Bundesamt. In February, inflation in Germany was 1.9 percent. The statement from the statistics office is a preliminary statement.
According to Allan Sørensen, chief economist at the Confederation of Danish Industry, German inflation in March is at its highest level in 26 months.
- We have to go back to January 2024 to find higher inflation in Germany. It is energy prices that are driving inflation up, he writes in a comment.
Allan Sørensen explains that the war between Israel, Iran and the USA and the resulting rising oil prices have sent prices up in Germany.
- The high oil prices have already been clearly visible at gas stations and in the prices of transport, but the longer the situation lasts, the more it will spread to other goods and services, he writes.
Therefore, Germans may also experience inflation increasing in the coming months, says Allan Sørensen. And this could be a serious blow to the German economy, which has already been in crisis for several years.
Both in 2023 and 2024, Germany was hit by negative growth, while the German economy grew by a modest 0.2 percent in 2025. Both the German government and the German central bank expect increased growth this year. However, rising inflation could be a challenge, Allan Sørensen believes.
- Loss of purchasing power and the prospect of higher interest rates could derail the German recovery before it even gets going, he writes.
/ritzau/
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