Stagnation of Inflation Rates in Germany, Reported in July 2025
In a recent announcement made by the Federal Statistical Office (Destatis) on Thursday, it has been revealed that Germany's overall inflation rate remained stable at 2.0% annually in July 2025. This figure is consistent with the rate recorded in June.
The detailed breakdown of this inflation rate is as follows:
- Energy prices decreased by 3.4% year-on-year, marking a continued decline but slightly less than the -3.5% recorded in June.
- Food prices, on the other hand, showed a sharper increase, rising by 2.2% year-on-year, compared to 2.0% in June.
- Services prices rose by 3.1% year-on-year, which was a bit slower than the 3.3% in June and noted as a three-year low for service inflation.
On a monthly basis, consumer prices increased by 0.3% in July, rebounding from no change in June and surpassing forecasts of 0.2% growth.
The core inflation rate, which excludes food and energy, remained stable at about 2.7% annually as of June (similar figures for July are implied). This indicates that while energy prices have had a downward drag on inflation, rising food and services prices have kept the overall inflation steady at 2%.
| Component | Annual Price Change July 2025 | Notes | |----------------|-------------------------------|--------------------------------| | Energy | -3.4% | Continued decline, slightly less than June's -3.5% | | Food | +2.2% | Sharper increase vs. June's 2.0% | | Services | +3.1% | Slight slowdown from June's 3.3% | | Overall CPI | +2.0% | Stable from June | | Core Inflation | ~+2.7% | Excludes food and energy, stable around June's rate |
The Federal Statistical Office (Destatis) is the source of these detailed price category trends. No further itemized breakdowns for specific subcategories within these sectors were provided in the July 2025 report.
In the detailed breakdown of July's inflation rate, energy prices showed a continued decline, albeit slightly less than the decrease seen in June, indicating a potential impact on energy finance. Meanwhile, food prices surged higher in comparison to the previous month, signifying potential impacts on household finance.
