German inflation hits 15-month low as energy, food prices slide

Cheap energy and lower food prices drove German inflation down to 1.8 per cent in December, the Federal Statistical Office said on Friday as it confirmed preliminary figures published earlier this month.

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The December reading brought full-year inflation in 2025 to 2.2 per cent, the same level as in 2024, according to the German Press Agency (dpa). However, core inflation, a measure that excludes volatile prices of food and energy, remained high at 2.8 per cent in 2025.

Consumer prices rose by 2.2 per cent on average last year, the Wiesbaden-based agency confirmed, unchanged from 2024, German Press Agency (dpa) said.

Pressure on household budgets eased in December, with the inflation rate dropping below the European Central Bank's 2 per cent target for the first time since September 2024.

While the price of services such as public transport and insurance rose 3.5 per cent, food prices were only 0.8 per cent higher than in December 2024.

Energy prices were 1.3 per cent lower in December 2025 and 2.4 per cent lower in the full year compared to 2024.

In addition, higher prices for public transport and a rising minimum wage could drive further inflation next year, the agency said.

German inflation slowed in December to 2.08, the federal statistics office said on Friday, confirming preliminary data.

Inflation, or consumer prices harmonised to compare with other European Union countries, stood at 2.6% year-on-year in November.

The statistics office gives more detailed monthly data on its website.