Official figures show that higher energy and food prices drove annual inflation in Germany to 2.1% in March. This is above the European Central Bank's 2% threshold.
Energy prices in Europe's top economy were 10.5% higher than at the same time last year, the Destatis statistics office said, as oil prices shoot up due to ongoing unrest in the Middle East and North Africa.
Vegetables and fruit, non-alcoholic drinks and staples such as butter and oil also rose sharply in price, the statistics showed.
The year-on-year inflation rate was stable compared to February. On a monthly basis, prices were 0.5% higher than last month. The data confirmed a preliminary estimate made at the end of March.
Last Thursday, the ECB hiked interest rates from their record lows for the first time since mid-2008, citing concerns about rising inflationary pressure.
ECB president Jean-Claude Trichet dampened fears that the rate increase was the first of many, although analysts expect the central bank will have to tighten the screw further to contain price pressures in the euro area.
