German Inflation Rate Confirmed at 2.3% in January

The annual inflation rate in Germany was confirmed at 2.3% in January 2025, easing from 2.6% in December and matching preliminary estimates.

Food inflation slowed significantly to 0.8%, compared to 2.0% in the previous month, while prices for services (4.0% vs 4.1%) and goods (0.9% vs 1.4%) moderated.

Meanwhile, energy costs declined by 1.6%, the same pace as in December, mainly due to drops in motor fuels (-0.1%), heating oil (-1.2%), and electricity (-3.6%).

Core inflation, which excludes volatile items such as food and energy, eased to 2.9%, the lowest in three months.

On a monthly basis, consumer prices fell by 0.2% in January, reversing a 0.5% increase in December.

Furthermore, the EU-harmonised CPI stood at 2.8% year-on-year, maintaining the same pace as in December, while falling 0.2% month-on-month after rising 0.7% the prior month.