The consumer price index (CPI) in Germany increased to 2.1 percent on an annual basis in January, due to the increase in food and service items.
The German Federal Statistical Office (Destatis) published the final inflation data for January.
Accordingly, annual inflation, which was 1.8 percent in December 2025, increased to 2.1 percent in January. Consumer prices increased by 0.1 percent on a monthly basis.
European Union (EU) compatible CPI increased by 0.1 percent monthly and 2.1 percent annually in January, in line with expectations. The data confirmed the preliminary data previously announced.
FOOD AND SERVICE PRICES WERE AFFECTIVE
In her evaluation of the data, Destatis President Ruth Brand pointed out that the increase in general consumer prices accelerated at the beginning of the year and said, “Especially food prices showed a more significant increase in January compared to previous months. The increase in food prices in the September-December 2025 period was below the general inflation. In addition, the increase in service prices continues to increase inflation in January.” he said.
According to the data, food prices increased by 2.1 percent annually and service prices by 3.2 percent in January, continuing to be the main determinants of inflation.
Among food items, eggs stood out with an increase of 12.5 percent, fruit with an increase of 6.1 percent, and meat and meat products with an increase of 4.9 percent. On the services side, transportation increased by 2.2 percent, health by 1.9 percent and rents by 2.1 percent.
On the other hand, while energy prices decreased by 1.7 percent on an annual basis, the decrease in electricity prices was recorded as 3.2 percent.
“Core inflation”, calculated by excluding energy and food, was 2.5 percent in January.
EYES ON ECB AND INTEREST RATE DECISION
Economists predict that inflation will be slightly above 2 percent in all of 2026 due to the effect of minimum wage increases in Germany.
The average inflation in Germany in 2025 was 2.2 percent.
On the monetary policy side, the European Central Bank (ECB) paused interest rate cuts in its July, September, October, December and February meetings after reducing the deposit rate 8 times since June 2024. Deposit interest is expected to maintain its current 2 percent level in the coming months.
In the Eurozone, inflation in January fell to 1.7 percent due to the decline in energy prices, remaining below the ECB’s medium-term target of 2 percent.
