Germany’s annual inflation rate remained at 2.0% in June 2025, according to provisional figures from the Federal Statistical Office (Destatis). This year-on-year reading, based on the Consumer Price Index (CPI), aligns with May’s figure, indicating stable headline price growth.
Consumer prices remained flat (0.0%) in June compared to May, which reflects steady short-term price developments.
The Harmonized Index of Consumer Prices (HICP), used for EU-wide comparison, showed:
The stable inflation environment provides the European Central Bank with clearer signals as it navigates its interest rate strategy. For German households, stable headline inflation offers some relief, although elevated core inflation indicates ongoing pressure on essential goods and services.

Global markets entered 2026 with a cautiously optimistic tone, as major currencies stabilized while precious metals extended their exceptional rallies.
Global markets ended the year with mixed performance as the euro held near 1.1740 during thin year-end trading, supported by the ECB’s pause on rate cuts and expectations of a softer US rate path under a potential Fed leadership change.
Detail Policy Expectations Support FX (12.30.2025)Global markets saw holiday volatility as the euro held near $1.18 on ECB-Fed policy divergence and the pound hit a three-month high above $1.35 against a weaker dollar.
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