Germany Inflation Rate Confirmed at 2%

The annual inflation rate in Germany fell to 2% in June 2025, the lowest in eight months, from 2.1% in each of the previous two months, and in line with the preliminary estimate. “In addition to the continued decline in energy prices, food price inflation slowed in particular. On the other hand, the above-average increase in service prices continued to drive up inflation”, the President of the Federal Statistical Office said. Energy prices declined 3.5% (vs -4.6% in May), led by motor fuels (-4.6%). Household energy fell by 2.8%, with consumers benefiting from lower prices for firewood, wood pellets and other solid fuels (-5.6%), heating oil (-5.6%) and electricity (-2.4%). Food inflation slowed (2% vs 2.8%) and services prices rose 3.3% (vs 3.4%). Higher prices were recorded for combined passenger transport services (+11.4%), services of social facilities (+8.5%), insurance services (+8.1%), in-patient health services (+6.5%), and maintenance and repair of vehicles (+5.6%).