Germany Inflation Rate Steady at 2%

Germany’s annual inflation rate held steady at 2% in July 2025, unchanged from June and slightly above market expectations of a slowdown to 1.9%, according to preliminary estimates. Food prices rose more sharply (2.2% vs 2%), while energy costs declined slightly less (-3.4% vs -3.5%), offsetting a slowdown in service inflation, which eased to a three-year low of 3.1% from 3.3%. Compared to the previous month, the CPI rose 0.3%, rebounding from a flat reading in June and above forecasts of 0.2%. Using the EU-harmonised index, the annual inflation rate actually fell to 1.8% from 2% and compared to expectations of 1.9%. On the monthly level, prices were up 0.4%, above 0.1% in June and in line with forecasts.