Germany's annual inflation rate eased to 2.0 per cent in June 2025, marking the lowest level since October 2024, according to preliminary data released by the Federal Statistical Office (Destatis) on Thursday. Consumer prices remained unchanged compared to May. "The inflation rate again weakened slightly in June and reached its lowest level in the first half of the year. In addition to the energy prices that continue to fall, the price increase in food in particular decreased," said Ruth Brand, Destatis President. The Harmonised Index of Consumer Prices (HICP), used for EU-wide comparison, also recorded a 2.0 per cent year-on-year increase in June, with a 0.1 per cent rise from the previous month — confirming preliminary estimates. Energy prices dropped 3.5 per cent year-on-year, led by lower costs for heating oil and electricity, although the pace of decline slowed from earlier months. Food inflation also eased, rising 2.0 per cent in June versus 2.8 per cent in May, with vegetable prices down 3.0 per cent and sugar plunging 28.6 per cent. Core inflation — which excludes food and energy — stood at 2.7 per cent, continuing to outpace overall inflation. Services remained a key driver, with prices up 3.3 per cent, including notable increases in passenger transport, social services, and healthcare. Goods prices rose 0.8 per cent annually, while consumer prices were stable month-on-month, as summer travel pushed up package holidays and airline fares, offsetting declines in food and clothing. Attribution: Amwal Al Ghad English Subediting: Y.Yasser
