06.01.202613:00:00UTC+00Germany's Inflation Eases in December, CPI Falls to 1.8%

Germany has reported a significant slowdown in its annual inflation rate for December 2025, as the Consumer Price Index (CPI) dropped to 1.8%, down from 2.3% in November 2025. This latest data, updated on the 6th of January 2026, marks a notable easing in inflationary pressures within Europe's largest economy.

The comparison reflects changes in the price index from December 2025 compared to the same month a year earlier. The previous month's reading showed a 2.3% year-over-year increase, indicating that while the prices continued to rise in December, they did so at a slower pace than in the previous month.

Economists and policy makers will be examining these figures closely, as a lower CPI indicates less pressure on consumer prices, potentially providing more scope for monetary policy adjustments from the European Central Bank. As the Eurozone grapples with economic growth challenges, Germany's cooling inflation could offer some respite from concerns over high inflation rates that have impacted spending power across the region.