Germany’s Yearly Inflation Rises in January

(MENAFN) Germany’s annual inflation rate increased more than expected in January, reaching 2.1 percent, up from 1.8 percent in December. This figure exceeded market expectations of 2 percent.

Energy prices continued to decline, falling 1.7 percent year-on-year, a sharper drop than the 1.3 percent decrease recorded in December 2025. However, higher-than-average increases in service and food prices pushed overall inflation upward, with services rising 3.2 percent and food prices increasing 2.1 percent. Food inflation accelerated from 0.8 percent in December.

Core inflation, which excludes food and energy, also rose slightly to 2.5 percent annually in January, up from 2.4 percent in December.

On a monthly basis, consumer prices increased 0.1 percent, despite expectations of no change. The data highlights a mixed inflation environment in Germany, with falling energy costs offset by rising food and service prices.

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