Germany's inflation rate slowed to 1.9% year-on-year in February 2026, according to new data from the Federal Statistical Office (Destatis), signalling a modest easing of price pressures in Europe's largest economy. The figure confirms a slight decline from 2.1% in January, although inflation remains close to the European Central Bank's target level.
© Sjankauskas | Dreamstime
Consumer prices increased 0.2% month-on-month, while the Harmonised Index of Consumer Prices (HICP), used for eurozone comparisons, rose 2.0% compared with February 2025.
Commenting on the data, Ruth Brand, President of the Federal Statistical Office, said: "The increase in consumer prices slowed slightly in February. In particular, the rise in food prices eased significantly and had a downward effect on the development of prices, while services continued to drive up inflation."
A key factor behind the slowdown was the decline in energy costs, which fell 1.9% compared with February 2025. Household energy prices dropped 3.5% year-on-year, including reductions in natural gas (-4.4%), electricity (-4.1%) and district heating (-1.0%). Government measures such as lower transmission network charges and the removal of the gas storage neutrality charge contributed to the decrease.
For the European interiors and furniture sector, lower energy costs could provide some relief after several years of elevated production expenses, particularly for manufacturers reliant on energy-intensive processes such as ceramics, glass and metal production.
Food prices also moderated, increasing 1.1% year-on-year, down from 2.1% in January. However, some categories remained volatile. Confectionery prices rose sharply (+8.1%), while meat products (+4.5%), fruit (+4.3%) and vegetables (+4.3%) continued to see notable increases. By contrast, significant price declines were recorded for edible fats and oils (-19.7%), butter (-32.9%) and potatoes (-18.1%).
Despite the easing headline rate, core inflation, excluding food and energy, remained at 2.5%, indicating persistent price pressure in other areas of the economy.
Services continued to be the primary driver of inflation, with prices rising 3.2% year-on-year. Significant increases were seen in social protection services (+7.0%), passenger transport (+6.2%) and vehicle maintenance (+5.0%). Higher costs for restaurant and hospitality services (+3.4%) and housing-related services (+3.3%) also contributed to overall inflation.
Goods prices, by contrast, rose more modestly at 0.8% compared with February 2025, with durable consumer goods increasing by just 0.6%. Some household-related products, including major domestic appliances, recorded price declines.
For the interiors and home furnishings market, the combination of moderating inflation and lower energy costs may support gradual recovery in consumer spending across Europe. However, continued price growth in services and housing-related costs suggests that household budgets remain under pressure, potentially influencing purchasing behaviour in discretionary categories such as furniture and home décor.
More information:
Destatis
www.destatis.de
