German inflation rises to 2.9% in August

German annual consumer price inflation increased to 2.9% in August, up slightly from 2.8% in July, the country's statistical office said on Monday.

The rise in consumer prices was mainly driven by higher energy prices, the preliminary figures showed.

Like elsewhere in Europe, prices in Germany have risen considerably since the start of the Iran war in late February, which has disrupted energy trade through the Strait of Hormuz, sending fuel prices soaring.

A fuel tax cut imposed by the government to help ease the burden on motorists expired in July, driving inflation up to 2.8% from 2.3% in June.

The year 2026 could turn out to become the most expensive for drivers since records began, according to the ADAC motoring organization. If energy prices remain high, food prices could rise further too, as transporting and cooling goods becomes more expensive.

Germany has also been struggling with a long spell of heat and drought this summer, which is expected to have impacted crop yields.