Germany’s Inflation Holds Steady at 2% in June

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.

Monthly Prices Unchanged

Consumer prices remained flat (0.0%) in June compared to May, which reflects steady short-term price developments.

Harmonized Inflation Slightly Higher

The Harmonized Index of Consumer Prices (HICP), used for EU-wide comparison, showed:

• A 2.0% year-on-year increase in June 2025.
• A slight 0.1% rise from May 2025.

Core Inflation Remains Elevated

• Core inflation, which excludes food and energy prices, is projected at 2.7% in June 2025.
• This higher figure suggests that underlying price pressures persist, particularly in housing and services.

Economic and Policy Context

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.