Germany inflation rises 2.1% at start of 2026

"Germany's inflation rate increased to 2.1% in January, confirming preliminary data and showing price pressures have strengthened at the start of the year, particularly with food and services. Consumer prices were up only 0.1% from December, as cheaper energy partly offset higher costs elsewhere, according to the Federal Statistical Office (Destatis). Energy prices fell 1.7% year over year, with household electricity down 3.2% and natural gas down 2.5%, helped by lower grid fees and the removal of the gas storage levy."

"Food inflation, however, accelerated to 2.1% compared to 2024 and was up from 0.8% from December. Sweets and chocolate saw especially steep increases, while prices also climbed for fruit and meat. Butter, oils, and potatoes became noticeably cheaper compared with a year earlier. Core inflation, excluding food and energy, remained elevated at 2.5%, highlighting persistent pressure in other sectors. Services rose 3.2% year over year, driven by higher costs in social facilities, transport, and rent."

Inflation in Germany rose to 2.1% in January year over year, while month-to-month consumer prices increased 0.1% as lower energy costs partly offset higher prices elsewhere. Energy prices fell 1.7% year over year; household electricity declined 3.2% and natural gas 2.5%, aided by lower grid fees and the removal of the gas storage levy. Food inflation accelerated to 2.1% year over year and rose 0.8% from December, with sweets, chocolate, fruit and meat gaining; butter, oils and potatoes were cheaper than a year earlier. Core inflation excluding food and energy stayed elevated at 2.5%, and services rose 3.2%.

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