According to the final report from the Federal Statistical Office (Destatis), in June, consumer prices rose by 2.0% per year, as expected, after increasing by 2.1% in May. This was the lowest rate since October 2024 (also +2.0%). Destatis said that in addition to the continued decline in energy prices, food price inflation slowed in particular. On the other hand, the above-average increase in service prices continued to drive up inflation
On a monthly basis, consumer prices remained unchanged, as expected, after increasing by 0.1% in May. The last time a lower indicator was recorded was in January (-0.2%).
The data also showed that in June, energy prices fell by 3.5% per year after falling by 4.6% in May. The prices of motor fuels (-4.6%) and household energy (-2.8%) were down year on year, with consumers benefiting from lower prices for firewood, wood pellets and other solid fuels (-5.6%), heating oil (-5.6%) and electricity (-2.4%). Food prices rose 2% year on year after increasing 2.8% in May.
Meanwhile, excluding energy prices, the inflation rate stood at +2.6% in June. The inflation rate excluding food and energy, often referred to as core inflation, was +2.7% in June.
Destatis said that in June, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Germany with inflation in European countries - rose by 0.1% on a monthly basis and by 2% per year. In May, HICP increased by 0.2% m/m and by 2.1% per annum.