Germany Inflation Slows to 1.9% in February

Germany’s annual inflation rate eased to 1.9% in February 2026 from 2.1% in January, coming in slightly below market expectations of 2.0%, according to preliminary estimates. The harmonized index of consumer prices, closely monitored by the ECB, also edged down to 2.0% from 2.1%, leaving both measures broadly aligned with the central bank’s 2% target. Goods inflation slowed to 0.8% from 1.0%, as energy prices declined at a faster pace (-1.9% vs. -1.7%) and food inflation cooled markedly to 1.1% from 2.1%. Services inflation held steady at 3.2%, while core inflation, which excludes food and energy, remained unchanged at 2.5%.

Germany’s annual inflation rate rose to 2.1% in January 2026 from 1.8% in December, confirming preliminary estimates. The latest reading moved slightly above the European Central Bank’s 2% target midpoint, mainly driven by higher costs for consumer goods (1.3% vs 0.8%), led by food (1%), and a rebound in durable goods (0.4% vs -0.3%). In contrast, services inflation moderated to 3.2% from 3.5% in December, although it remained at an above-average rate. Prices for services provided by social institutions (7.1%) increased particularly sharply, alongside combined passenger transport (6.2%), partly due to a price increase for the Deutschlandticket (Germany Ticket) from EUR 58 to EUR 63. On a monthly basis, consumer prices edged up 0.1% after stagnating in December. The core inflation rate, which excludes food and energy, ticked up to 2.5% from 2.4%. Meanwhile, the EU-harmonized CPI also increased slightly to 2.1% from 2.0%, confirming earlier estimates.

Germany’s annual inflation rate rose to 2.1% in January 2026, up from December’s 15-month low of 1.8% and slightly above market expectations of 2.0%, according to a preliminary estimate. The harmonized index of consumer prices (HICP), the measure closely watched by the ECB, also increased to 2.1%, leaving both readings near the central bank’s 2% target. Goods inflation accelerated to 1.0% from 0.4%, largely reflecting a sharp rise in food prices (2.1% vs 0.8%). This came despite a deeper decline in energy costs (-1.7% vs -1.3%). Meanwhile, services inflation eased to 3.2% from 3.5%, offering some relief on underlying price pressures. Core inflation, which strips out food and energy, ticked up to 2.5% from 2.4%, after hitting its lowest level in more than four years in December.