Key facts
- German annual inflation rose to 2.2% in August 2025.
- This marks the first increase in the inflation rate since the start of the year.
- Food prices saw a significant year-on-year increase of 2.5% in August 2025.
- Energy prices continued to decline, down 2.4% year-on-year.
- Core inflation, excluding food and energy, held steady at 2.7%.
Germany's annual inflation rate, measured by the consumer price index (CPI), increased to 2.2% in August 2025, a slight rise from 2.0% in July and the first acceleration seen this year. Preliminary data from the federal statistics office confirmed the figure, which was below the 3.1% forecast by Reuters analysts for August.
The uptick in inflation was largely attributed to an acceleration in food price increases, which rose 2.5% year-on-year, compared to 2.2% in July. Specific categories like fruit, sugar, jam, honey, and confectionery saw marked price increases. Conversely, the decline in energy prices slowed, with a 2.4% year-on-year decrease, less pronounced than the 3.4% drop in July. Prices for motor fuels and household energy also decreased.
Core inflation, which excludes volatile food and energy prices, remained stable at 2.7% for the third consecutive month. Service prices saw a steady year-on-year increase of 3.1%, with notable rises in combined passenger transport and social facility services. Goods prices increased by 1.3% on an annual basis.