The German inflation rate has returned to normal levels of around 2.2 percent, based on preliminary figures for 2024. Compared to skyrocketing rates in 2022 and 2023, this can be seen as an improvement of the national economic situation. Various factors influenced the recent development of inflation in Germany. These are the same that pushed inflation levels around the rest of the world, particularly since the beginning of the Russia-Ukraine war in 2022. The most recent recorded annual inflation rate in Germany is within the normal range defined by central banks internationally, which is generally between 1.5 and four percent a year. The 2.2 percent for 2024 are not only noticeably lower than the preceding two years, but also less than in 2021, one of the COVID-19 pandemic lockdown years in Germany. 2022 and 2023 followed on the heels of the challenges posed by the pandemic which were already straining the national economy: supply chain interruptions and delays, transport problems, labor shortages across sectors and industries. These issues continue to partially impact the economy today.

The inflation rate in Germany was 1.35 percent in 2019. The current rate meets the European Central Bank’s target rate, which is “below, but close to, 2 percent.” Many central bankers favor inflation between 2 and 3 percent, but Germans in particular would rather risk deflation than too much inflation.

Causes of inflation

Central bankers like low, stable inflation because this is a sign of a growing economy. When the economy grows, workers become more productive and spend more, and prices slowly rise. Monetary policy can cause inflation, but Germany has given this responsibility to the European Central Bank (ECB). Importantly, inflation expectations affect inflation, making it a self-fulfilling prophecy.

The German context

During the eurozone crisis, German politicians were advocating for the ECB to raise interest rates quickly. This would have reduced inflation, possibly causing deflation, but would have presented another hurdle for the struggling Greek economy. This is because of the hyperinflation of the Weimar Republic in the 1920s, when Germans carried their pay home in wheelbarrows because the banknotes had lost so much value. Ever since, Germans often warn that inflation harms pensioners and that personal provisions are necessary in any case. Fortunately for them, this statistic forecasts stable, modest inflation that does not alarm many economists.

Harmonised Inflation Rate YoY in Germany decreased to 2.60 percent in February from 2.80 percent in January of 2025. This dataset includes a chart with historical data for Germany Harmonised Inflation Rate YoY.

For 2024, economic experts predict a 2.2 percent inflation rate growth in Germany. Therefore, prices are expected to rise slower, one reason being that energy commodity prices have fallen significantly again. Nevertheless, the economic institutes do not expect the inflation rate to fall to two percent until 2026.

In February 2025, based on preliminary figures, consumer prices in Germany increased by 2.3 percent compared to the same month of the previous year. The inflation rate is calculated using the price increase of a product basket defined by the German Federal Statistical Office. This product basket contains services and products, on which the average consumer spends money throughout the year. This includes expenses for groceries, clothes, rent, power, telecommunications, recreational activities and raw materials (i.e. gas, oil), as well as federal fees and taxes.The term inflation means the devaluation of money caused by the increase of the price level of products (consumer goods, investment goods). The Consumer Price Index shows the price trends for private consumption expenses and shows the current inflation level when increasing.

Services Inflation in Germany decreased to 3.80 percent in February from 4 percent in January of 2025. This dataset includes a chart with historical data for Germany Services Inflation.

The latest inflation rate, i.e. the percent change in the CPI from a year ago to now, in Germany was 2.59 percent. That number was released in . It shows a decrease from the inflation rate in the previous month when it stood at 2.77 percent. Compared to a year ago, we see a decrease from the inflation...

Between January 2018 and January 2025, Germany's inflation rate experienced significant volatility. Initially fluctuating between 0.3 and 3.1 percent, the rate escalated dramatically, reaching a peak of 10.4 percent in October 2022. By September 2024, the inflation rate had moderated to 1.6 percent. However, inflation began rising again towards the end of 2024, standing at 2.6 percent in December. The European Central Bank (ECB) responded to these inflationary pressures with a series of interest rate adjustments. After maintaining historically low rates, the ECB initiated its first rate hike since March 2016 in July 2022, raising the rate to 0.5 percent. The interest rate continued to increase, stabilizing at 4.5 percent from September 2023 to June 2024. In a notable shift, June 2024 marked the first rate cut during this period. It was followed by a series of rate cuts until the end of the year, with the last cut in 2024 setting the rate at 3.15 percent.

Graph and download economic data for Consumer Price Index: OECD Groups: All Items Non-Food Non-Energy: Total for Germany (CPGRLE01DEM657N) from Feb 1962 to Nov 2023 about core, Germany, all items, CPI, inflation, price index, indexes, and price.

Producer Price Inflation MoM in Germany decreased to -0.20 percent in February from -0.10 percent in January of 2025. This dataset includes a chart with historical data for Germany Producer Price Inflation MoM.

This dataset provides values for INFLATION RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

Graph and download economic data for Consumer Price Index: OECD Groups: All Items Non-Food Non-Energy: Total for Germany (CPGRLE01DEQ657N) from Q2 1962 to Q3 2023 about core, Germany, all items, CPI, inflation, price index, indexes, and price.

This statistic shows the monthly inflation rate for HICP (all items) compared to the same period in the previous year in Germany from February 2018 to January 2019. In December 2018, the inflation rate was 1.7 percent compared to the same month in the previous year.

Consumer Price Index CPI in Germany increased to 120.80 points in February from 120.30 points in January of 2025. This dataset provides the latest reported value for - Germany Consumer Price Index (CPI) - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Key information about Germany Core CPI Change

• Germany Core CPI Change was reported at 3.277 % in Dec 2024.
• This records an increase from the previous number of 3.020 % for Nov 2024.
• Germany Core CPI Change data is updated monthly, averaging 1.328 % from Jan 2006 to Dec 2024, with 228 observations.
• The data reached an all-time high of 5.837 % in Mar 2023 and a record low of -0.300 % in Jul 2020.
• Germany Core CPI Change data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Core CPI: Y-o-Y Growth: Monthly.

Graph and download economic data for Consumer Price Indices (CPIs, HICPs), COICOP 1999: Consumer Price Index: Total for Germany (CPALTT01DEM659N) from Jan 1956 to Feb 2025 about Germany, all items, CPI, price index, indexes, and price.

CPI: Weights: HF: Water Supply & Misc Service Relating to Dwelling ( data was reported at 27.190 Per 1000 in Jul 2025. This stayed constant from the previous number of 27.190 Per 1000 for Jun 2025. CPI: Weights: HF: Water Supply & Misc Service Relating to Dwelling ( data is updated monthly, averaging 33.040 Per 1000 from Jan 2000 (Median) to Jul 2025, with 307 observations. The data reached an all-time high of 36.430 Per 1000 in Dec 2019 and a record low of 27.190 Per 1000 in Jul 2025. CPI: Weights: HF: Water Supply & Misc Service Relating to Dwelling ( data remains active status in CEIC and is reported by Statistisches Bundesamt. The data is categorized under Global Database’s Germany – Table DE.I031: Consumer Price Index: Weights.

This statistic shows the average inflation rate in the DACH countries from 2019 to 2029*. The DACH region includes Germany, Austria, and Switzerland. In 2022, the average inflation rate in Austria amounted to about 8.61 percent compared to the previous year.

Since 2021, the inflation rate in Germany and the euro area has increased significantly. At the same time, there are increasing signs of ``de-anchoring'' of inflation expectations in Germany. This paper - building on the approach of Andre et al. (2022) - examines in a pilot study survey-based narratives for the rising inflation together with socio-economic factors. A mixed-methods approach is used to classify the narratives, with clustering based on statistical criteria. A regression analysis is used to examine the relationship between socio-economic factors and narratives on the one hand, and the relationship between narratives/clusters of narratives and a de-anchoring of inflation expectations on the other hand. We can associate certain narratives with socio-economic characteristics and political partisanship. Narrative complexity is a function of education and literacy. Narrative clusters correspond to certain milieus and dimensions of socio-economic stratification. Narratives of supply shortages and price gouging are positively correlated with anchored expectations; demand and government plus other narratives are negatively correlated with anchored expectations.

Graph and download economic data for Consumer Opinion Surveys: Consumer Prices: Future Tendency for Germany (CSINFT02DEM460S) from Jan 1985 to Feb 2025 about consumer sentiment, consumer prices, Germany, consumer, and inflation.