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Thursday, September 25, 2025

German inflation slowed to 1.8% in July

Consumer prices in Germany, harmonised with EU standards, rose by 1.8% in July compared to the same month last year, according to final data from the country’s Federal Statistical Office (Destatis).

Preliminary data also pointed to a 1.8% rise in consumer prices, and analysts polled by Trading Economics did not expect a revision to the figure.

Germany’s inflation rate was 2 per cent in June.

The July figure was the lowest since September last year, when it was also at 1.8%.

Compared to the previous month, consumer prices in July rose by 0.4%, as predicted by analysts. In June, the growth rate was 0.1% compared to May.

Consumer prices, calculated by German standards, increased by 2% in annual terms last month after the same growth in June. Month-on-month prices rose 0.3%, while June prices were unchanged from May. Both figures were in line with market forecasts.

Energy in Germany in July fell 3.4% year-on-year, while food rose 2.2%. Excluding these two volatile categories, the inflation rate was 2.7%. Meanwhile, the cost of services increased by 3.1%.

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