German Inflation Confirmed at 1.8% in December

2026-01-16 07:09 By Chusnul Chotimah 1 min. read

Germany’s annual inflation rate fell to 1.8% in December 2025, matching flash estimates and down from 2.3% in November.

The reading fell below the European Central Bank’s 2% target midpoint for the first time since September 2024, marking the lowest inflation rate in 15 months.

Goods inflation eased sharply, slowing to 0.4% from 1.1% in November, due to softer increases in food prices (0.8% vs 1.2%) and a deeper decline in energy prices (-1.3% vs -0.1%), led by lower prices for heating oil (-3.6%) and electricity (-1.8%).

In contrast, services inflation remained elevated and unchanged at 3.5%, driven by sharp increases in passenger transport (11.4%) and social services (7.7%).

Core inflation, which excludes volatile food and energy prices, fell to 2.4%, its lowest level since June 2021.

Meanwhile, the EU-harmonized CPI eased to 2.0% in December, its lowest level since July.

For the full year 2025, national inflation averaged 2.2%, while harmonized inflation averaged 2.3%.



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