Frankfurt (Germany), 26 March (LaPresse) – The conflict in Iran risks pushing inflation in Germany up to 3% in the coming months, with possible repercussions for the economy. This is according to the Bundesbank’s latest monthly report. Rising fuel and diesel prices, linked to the fighting in the Middle East, and a possible prolongation of the blockade of the Strait of Hormuz could keep inflationary pressure high for an extended period. In February, German inflation stood at 1.9%. The Bundesbank stresses that future developments will depend on how the conflict unfolds, whilst households and businesses are already feeling the pinch of higher energy costs. The German economy started the year without momentum: following 0.3% growth in the final quarter of 2025, GDP is set to stagnate between January and March. A prolongation of the conflict could generate further uncertainty and a slowdown in global growth. According to the Bundesbank, low industrial capacity and weak competitiveness are holding back private investment. Public stimulus measures in infrastructure and defence will only have a tangible impact in the second half of the year.