2026.07.1006:07:46UTC+00German Inflation Confirmed at 4-Month Low of 2.6% in May

Germany’s annual inflation rate eased to 2.3% in June 2026, confirming the preliminary estimate and down from 2.6% in May. This marked the lowest rate since February, largely reflecting weaker price pressures for goods, where inflation slowed to 1.7% from 2.2%. A key driver was energy, with inflation in that category moderating to 3.4% from 6.6%. Within energy, motor fuel prices rose 11.3% year-on-year, down from an 18.0% increase in May, while heating oil prices climbed 29.4%, compared with 47.9% previously.

Food inflation was unchanged at 0.4%. Prices for sugar, jam, honey, and other confectionery increased by 4.8%, fish, fish products, and seafood by 3.3%, and meat and meat products by 2.4%. These gains were offset by notable declines in edible fats and oils (-14.7%) and dairy products (-6.2%).

Services inflation remained stable at 3.1%. Core inflation, which excludes volatile food and energy prices, also held steady at 2.5%.

On a monthly basis, the consumer price index (CPI) fell by 0.3% in June, in line with preliminary data, following a 0.2% decline in May. The EU-harmonized index of consumer prices (HICP) showed annual inflation slowing to 2.4% from 2.7%, remaining slightly above the European Central Bank’s 2% target.