FX.co ★ Germany February Inflation Confirmed at 1.9%

Germany’s annual inflation rate slowed to 1.9% in February 2026, down from 2.1% in January, confirming preliminary estimates. The easing was largely driven by lower energy prices, which fell 1.9%. Within energy, prices declined for natural gas (-4.4%), electricity (-4.1%), district heating (-1.0%), and heating oil (-4.7%).

Food inflation also moderated, with prices up 1.1% year-on-year compared with 2.1% in January. Sharp price drops in edible fats and oils (-19.7%), potatoes (-18.1%), and dairy products (-4.9%) more than offset notable increases in confectionery (+8.1%) and meat products (+4.5%).

Goods inflation cooled to 0.8% from 1.0%, while services inflation remained unchanged at 3.2%. Core inflation, which excludes food and energy, was stable at 2.5%.

On a monthly basis, the consumer price index (CPI) rose 0.2% in February, following a 0.1% increase in January, supported by higher prices for energy, food, administrative services, and package holidays. The EU-harmonised index of consumer prices (HICP) increased 2.0% year-on-year and 0.4% month-on-month, in line with earlier estimates.