CPI inflation in Germany in April 2026. Already almost 3% on the counter

Consumer inflation in Germany, in line with economists' expectations, accelerated to almost 3% in April and reached the highest level since January 2024. It was fueled by rising fuel prices and the lack of tax reductions by the German government.

CPI inflation in Germany in April 2026 it accelerated to 2.9% – results from preliminary estimates presented by Destatis. This is more than 2.7% recorded in March and clearly more than in February, when the basket of consumer goods prices increased by 1.9%.

This is the highest reading since January 2024, significantly exceeding the 2% inflation target of the European Central Bank. At the same time, this result was a slight positive surprise, as the market consensus assumed a reading of 3.0%.

However, it is worth paying attention to the continuing very high monthly dynamics. Compared to March, the German CPI increased by 0.6% after a 1.1% month-on-month increase in the previous month. To think about achieving the 2% annual goal, the average monthly CPI increase should not exceed 0.165%.

The fuel shock drove up inflation across Europe

Of course, both the April and March whiff of CPI inflation in Germany was a derivative of the fuel shock that has been going on for two months now. The blockade of the Strait of Hormuz, which has been ongoing since the end of February, has caused fuel prices in our western neighbors to exceed two euros per liter and nominally to be the highest in history. According to German statistics, energy in April was as much as 10.1% more expensive than a year ago.

However, so far the sharp increase in fuel prices did not spread to the rest of the economy. At least this is the conclusion that core inflation would suggest. Prices excluding food, fuel and energy increased by only 2.3% year on year – i.e. even at a slightly slower pace than the 2.5% recorded in March, February and January. Here, the increased dynamics of service prices continues to have a negative impact, which in April 2026 was on average 2.8% higher than a year ago. The prices of goods increased by 2.9%, food prices by 1.2% and energy were 10.1% more expensive than in April '25.

In the morning we learned the preliminary reading of consumer inflation in Spain, where in April it amounted to 0.4% month-on-month and 3.2% year-on-year. In both shots
these were readings of 0.2 points. percent lower than the market consensus and lower than 1.2% m/m and 3.4% y/y recorded in March. The preliminary estimates of CPI inflation for Poland will be released on Thursday morning (at 9:30). At 11:00, Eurostat will publish a flash estimate of April HICP inflation in the euro zone. This measure of price inflation in the Eurozone accelerated to 2.6% in March from 1.9% recorded in February.

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