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German inflation edges up in August 2025 and exceeds 2% mark

Germany's inflation rate is expected to reach +2.2% in August 2025, compared with the same month last year, according to provisional data from the Federal Statistical Office (Destatis). On a monthly basis, consumer prices rose by 0.1% compared with July 2025.

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The inflation rate excluding volatile food and energy costs, commonly referred to as core inflation, is projected at +2.7% for August 2025. Destatis reports that this reflects a steady trend in underlying price pressures despite fluctuations in individual sectors.

Breaking down the year-on-year changes, services continued to see higher price growth at +3.1%, while goods rose by 1.3%, marking a slight acceleration compared with previous months. Within goods, energy prices remained in negative territory at -2.4%, though the decline is less pronounced than in previous months.

Destatis notes that consumers can use the Personal Inflation Calculator on its website to assess their own rate of inflation, adjusting for individual consumption patterns.

The Federal Statistical Office also highlights methodological distinctions between the national Consumer Price Index (CPI) and the Harmonised Index of Consumer Prices (HICP) used across the Euro area for monetary policy. While both indices measure price developments, differences arise in coverage, weighting, and methodology. For example, the CPI includes expenditures on owner-occupied housing, games of chance, and broadcasting fees, which are not part of the HICP.

Provisional figures for August 2025 are subject to revision, with the final results scheduled for release on 12 September 2025.

Provisional Year-on-Year Inflation Rates, August 2025

  • Overall CPI: +2.2%
  • Core inflation (excluding food and energy): +2.7%
  • Services: +3.1%
  • Goods: +1.3%
  • Energy: -2.4%

More information:
Destatis
www.destatis.de

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