Financial News: German Inflation Slowest In 15 Months In December

German Inflation Slowest In 15 Months In December

01/06/2026 - 15:43:00 (RTTNews)

(RTTNews) - Germany's consumer price inflation eased more than expected to its lowest level in over a year in December, preliminary data from the statistical office Destatis showed on Tuesday.

The consumer price index rose 1.8 percent year-on-year following an increase of 2.3 percent in each of the previous two months. Economists had expected inflation to slow to 2.0 percent.

The latest inflation rate was the slowest since September 2024, when it was 1.6 percent.

Core inflation, which excludes food and energy, dropped to 2.4 percent from 2.7 percent in November.

Inflation, based on the EU measure of the harmonized index of consumer prices or HICP, slowed to 2.0 percent from 2.6 percent. Economists had expected inflation to drop to 2.2 percent. The rate of inflation was the lowest since August, when it was 2.1 percent.

Services inflation was stable at 3.5 percent in December, while the increase in prices of goods slowed sharply to 0.4 percent from 1.1 percent.

Energy prices decreased 1.3 percent, which was much worse a fall than in the previous few months. Food inflation eased to 0.8 percent from 1.2 percent. The annual average CPI inflation was steady at 2.2 percent in 2025, same as in the previous year. Meanwhile, the annual average HICP inflation eased to 2.3 percent, the lowest since the pandemic year of 2020, from 2.5 percent in 2024.

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