German inflation reaches two-year high amid Mideast tensions

German inflation in March rose to its highest level since January 2024, as a surge in energy prices driven by escalating tensions in the Middle East pushed up costs across the economy, official data showed on Monday.

The inflation rate climbed to 2.7 percent in March, up from 1.9 percent in February and around 2 percent in recent months, according to the Federal Statistical Office (Destatis).

Energy prices increased by 7.2 percent year-on-year, reversing a downward trend and marking their first rise since December 2023, Destatis said. By contrast, price growth in services and food remained broadly unchanged.

The data underscores a renewed inflationary impulse from energy costs, which had eased after surging during the Russia-Ukraine conflict but remain above pre-crisis levels.

In a monthly report published last week, the Deutsche Bundesbank warned that rising energy prices linked to the Middle East conflict were weighing on both businesses and households and could drag on Germany's economic growth in the first half of the year.

The central bank expects inflation in Europe's largest economy to pick up further in the coming months, potentially reaching around 3 percent in the near term. A prolonged conflict could keep inflation elevated for longer, it added.

Higher oil, gas and even electricity costs are also feeding into German companies' pricing plans. A survey by the Munich-based ifo Institute on Monday showed its price expectations index jumped to 25.3 points in March from 20.3 in the previous month, hitting the highest level in three years.

German inflation reaches two-year high amid Mideast tensions

German inflation reaches two-year high amid Mideast tensions

German inflation reaches two-year high amid Mideast tensions

German inflation reaches two-year high amid Mideast tensions

A Chinese envoy on Friday condemned any attacks targeting innocent civilians and called on the parties to the Ukraine conflict to cease attacks on civilians and civilian infrastructure.

All parties should demonstrate political will and flexibility to achieve a comprehensive and lasting peace agreement, said Fu Cong, China's permanent representative to the United Nations, at the UN Security Council emergency meeting held at the request of the Russian Federation following reports of an attack on a dormitory in Starobilsk in the Luhansk region.

"China has noted the reports of drone attacks on a school in Starobelsk and expresses deep concerns on the casualties it caused, especially those of students. China condemns any attacks targeting innocent civilians. The lingering Ukraine crisis, the ever intensified situation in the battlefield, and the immense miseries of ordinary people, are all things that no party, including China, would like to see," said Fu.

Fu called for calm and restraint, and for the parties to strictly observe international humanitarian law, effectively protect civilians' safety, and cease attacks on civilians and civilian infrastructure, so as to promote cooling of the situation, and strive to bring hope for an early return to peace.

China's position on the Ukraine issue is objective, impartial, and consistent, Fu said, adding that Chin is willing to work with the international community and continue playing a constructive role in the political settlement of the crisis.

Russian UN ambassador Vassily Nebenzia told the Security Council that the Ukrainian drone attack on a college dorm building on Friday has killed six people dead and injured 40 others.

China condemns attacks on civilians in Ukraine conflict