Germany’s annual inflation rate accelerated to 2.8% in July, up sharply from 2.3% in June and matching the preliminary estimate. Consumer prices increased 0.8% month-over-month, also in line with expectations, reversing June’s 0.3% decline.

The acceleration was driven largely by energy prices, which rose 8.3% year-over-year in July compared with 3.4% in June. Core inflation, excluding food and energy, stood at 2.4%, indicating that the latest increase in headline inflation was particularly influenced by renewed energy-price pressures.

The figures reinforce concerns that the recent surge in oil and other energy costs linked to Middle East tensions could complicate the inflation outlook for Germany and the broader eurozone. The European Central Bank kept interest rates unchanged at its July meeting while retaining the option of further tightening as higher energy prices create renewed inflation risks.

With German inflation moving further above the ECB’s 2% target, the July data could strengthen the case for maintaining a restrictive monetary-policy stance, particularly if elevated energy prices persist in the coming months.