FX.co ★ Germany Inflation Rises More than Expected to 5-Month High

In July 2025, Germany experienced an increase in its annual consumer price inflation, which rose to 2.2% from the previous month's 2%. This rate exceeded market forecasts, which anticipated a 2.1% rise, according to preliminary estimates. This marks the highest inflation rate since March, following two months of alignment with the European Central Bank's 2% target. The inflation for goods saw an uptick to 1.3% from June’s 1%, primarily driven by an increase in food prices, which climbed to 2.5% from 2.2%. Additionally, there was a smaller decline in energy prices, which dropped by 2.4% compared to the previous 3.4% decrease. Meanwhile, services inflation remained steady at 3.1%, and core inflation also held firm at 2.7%. On a monthly scale, consumer prices edged upwards by 0.1%.