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German inflation continues to edge up beyond +2.0% mark

The Federal Statistical Office (Destatis) has confirmed that Germany's inflation rate stood at +2.2% in August 2025, up from +2.0% in both June and July. Compared with July 2025, consumer prices increased by 0.1%.

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"The rate of inflation has inched up slightly for the first time this year," said Ruth Brand, President of Destatis. She added: "The increase in food prices accelerated in August. In addition, the decline in energy prices contributed less to slowing inflation than in the previous months."

Energy prices were 2.4% lower than in August 2024, though the fall was markedly smaller than July's -3.4%. Motor fuels (-2.5%) and household energy (-2.3%) both declined year-on-year, with significant drops in heating oil (-5.2%) and firewood and pellets (-3.5%). Electricity (-1.7%) and district heating (-1.6%) also fell, while natural gas rose slightly (+0.7%).

Excluding energy, the inflation rate was +2.6%, while core inflation (excluding both food and energy) remained at +2.7%. Service prices rose 3.1% year-on-year, driven by combined passenger transport (+11.1%), social facilities (+8.1%), and in-patient health services (+6.5%). Insurance (+6.4%) and water supply (+4.0%) also recorded strong increases. Net rents exclusive of heating costs rose +2.0%. International flights were among the few services to fall in price (-8.2%).

Goods prices rose 1.3% compared with August 2024, up from July's +1.0%. Non-alcoholic beverages climbed +8.7%—with coffee, tea and cocoa up +18.5%—while used cars increased +7.2%. By contrast, consumer electronics (-2.8%) and information processing equipment (-2.4%) became cheaper.

Month on month, prices rose +0.1% in August, with heating oil (-4.1%) driving a 0.4% drop in energy, while food prices were nearly stable (+0.1%). Coffee and similar drinks were up 3.1% on July, extending a trend since December 2024.

The harmonised index of consumer prices (HICP), the Eurozone benchmark, stood at +2.1% year-on-year and +0.1% month on month.

More information:
Destatis
www.destatis.de

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