German wholesale prices post fastest rise in over 3 years on energy costs

German wholesale prices surged in August at their fastest pace in over three years, driven by rising energy costs due to the conflict in Iran and the Middle East, according to the federal statistics office. The wholesale price index increased by 6.8% in August 2026 compared to the same period last year, marking the highest monthly rise since February 2023, when prices jumped by 9.5%.

The increase from the previous month stood at a modest 0.9%. The surge in wholesale prices was primarily due to the conflict in Iran and the Middle East, which caused higher costs for energy products and raw materials. Petroleum product prices surged by 36.1% year-on-year, while chemical product prices rose by 13.6%. German inflation has remained above the European Central Bank's 2% target since the start of the Iran conflict, with August's inflation rate at 2.9%.

ECB executive board member Isabel Schnabel described the recent energy price increases as quite concerning, and the central bank raised interest rates for the second time in 2026 and revised up many of its inflation forecasts.