Germany's inflation rate climbed to 2.4% in September 2025, marking an increase from 2.2% in August and 2.0% in both July and June, according to the Federal Statistical Office (Destatis). Compared with August, consumer prices rose 0.2%, signalling a continuation of the upward trend after months of declining inflation earlier in the year.
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The rise in overall inflation was largely driven by services, which recorded a year-on-year increase of 3.4%. Notable contributors included combined passenger transport services (+11.2%), , insurance (+6.5%), and maintenance and repair of vehicles (+5.4%). Net rents excluding heating expenses rose 2.0%, maintaining their significant impact on the overall price development. By contrast, only a few services, such as international flights (-5.9%), registered lower costs compared with the previous year.
Goods prices also contributed to inflation but at a more moderate pace. Overall, goods rose 1.4% year-on-year, with non-durable consumer goods up 1.8% and durable goods 1.1%. Energy prices fell slightly by 0.7% year-on-year, although the decline was less pronounced than in previous months. Motor fuel prices rose 1.1%, household energy fell (-1.9%), electricity decreased (-1.6%), and natural gas and heating oil saw modest increases (+0.7% and +0.1%, respectively).
Core inflation, which excludes volatile food and energy prices, rose slightly to 2.8%, up from 2.7% in the preceding months. Excluding only energy, inflation was 2.7%, reflecting that price increases persisted across other important product groups. On a monthly basis, the overall CPI increased 0.2%, driven by goods (+0.4%), particularly clothing (+5.3%), while service and food prices rose only marginally (+0.1%) and energy prices decreased slightly (-0.1%).
Ruth Brand, President of Destatis, noted: "After a period of decreasing inflation earlier this year, we registered an increase for the second consecutive month. Service prices continued to rise at an above-average rate, while the previous easing effect of falling energy prices has diminished."
The September 2025 data highlights the continued influence of service sector inflation, moderate increases in goods prices, and slowing declines in energy costs, contributing to an overall upward pressure on consumer prices in Germany.
More information:
Destatis
www.destatis.de
