The Federal Statistical Office (Destatis) has confirmed that Germany's inflation rate remained unchanged at +2.0% in July 2025, matching the level recorded in June. This follows rates of +2.1% in both May and April, signalling price stability over recent months.
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'The rate of inflation has stabilised since the start of the year and remained unchanged again for two consecutive months,' said Ruth Brand, President of Destatis. 'Energy prices are continuing to drop and have a downward effect on overall inflation. On the other hand, the increase in service prices, in particular, remains above average and is driving up inflation.'
On a monthly basis, the consumer price index (CPI) rose by 0.3% in July. The Harmonised Index of Consumer Prices (HICP), the EU's preferred measure, registered an annual rise of 1.8% and a monthly increase of 0.4%.
Energy prices continue to ease
Energy product prices fell 3.4% compared with July 2024, marking the third consecutive month of slower declines. Motor fuels (-4.5%) and household energy (-2.6%) both saw reductions, with notable drops in firewood, wood pellets and other solid fuels (-5.3%), heating oil (-5.0%), electricity (-2.0%) and district heating (-1.8%). Only natural gas recorded a slight year-on-year rise (+0.3%).
Core inflation remains elevated
Excluding energy, inflation stood at +2.6%, while the rate excluding both food and energy, often referred to as core inflation, was +2.7%, unchanged from June. Both measures have been consistently above overall inflation for over a year.
Services lead price growth
Service prices increased 3.1% over the year, with strong rises in combined passenger transport services (+11.3%), letter and parcel services (+9.0%) and services of social facilities (+8.2%). Other notable increases included insurance (+5.8%), vehicle maintenance and repair (+5.7%), restaurant and café services (+4.1%) and water supply-related services (+3.9%). International flights (-6.8%) and telecommunications services (-1.4%) were among the few to register declines.
Goods prices show modest growth
The price of goods rose 1.0% year on year, with non-durable consumer goods up 1.1% and durable goods up 0.9%. Non-alcoholic beverages (+7.5%), especially coffee, tea and cocoa (+16.6%), and tobacco (+6.0%) saw above-average increases. In contrast, mobile phones (-5.1%), information processing equipment (-4.5%) and electrical household appliances (-2.6%) became cheaper.
Monthly trends
Compared with June, international flight tickets (+12.7%) and package holidays (+10.7%) recorded sharp seasonal rises. Energy prices were up 0.4% on the month, while food prices remained virtually unchanged (-0.1%). Clothing prices fell 3.5%, reflecting seasonal discounting.
Destatis notes that the CPI and HICP differ in coverage and methodology, and encourages consumers to use its Personal Inflation Calculator to assess their own cost-of-living changes.
More information:
Destatis
www.destatis.de
