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.
“Overall, consumer price increases intensified at the beginning of the year,” said Destatis President Ruth Brand. “Food prices, in particular, rose more sharply in January than in the preceding months.”
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.
Edited by: Roshni Majumdar
