FX.co ★ German Inflation Rate Flatlines in December Amid Economic Uncertainty

Germany's Consumer Price Index (CPI) showcased a stagnation in December 2025, with the rate settling at 0.0%, up from a deflationary -0.2% reported in November 2025. This data, updated on January 6, 2026, highlights the month-over-month trajectory which contrasts the country's earlier descent into deflation.

The comparative analysis between the months of November and December underscores a halt in the downward pricing pressure that had seemed to take hold as 2025 came to a close. While the zero percent change indicates that consumer prices maintained a steady course, the previous period’s dip into negative territory had sparked concerns among economists regarding potential long-term deflationary risks.

This stabilization in the CPI may offer some respite to German policymakers and markets alike who have been grappling with an unpredictable economic landscape. However, the unchanged rate also signals that ambitions for inflationary growth remain unmet, leaving questions raised over future fiscal strategies and consumer confidence moving into the early months of 2026.