Germany’s statistical office, Destatis, has confirmed an inflation rate of 2.0 percent for July 2025. This figure aligns with preliminary estimates released at the end of July and remains consistent with the 2.0 percent recorded in June, following increases of 2.1 percent in both May and April.
“The inflation rate has stabilized since the beginning of the year, remaining unchanged for two consecutive months” stated Destatis President Ruth Brand. “The decline in energy prices continues to dampen overall inflation. However, price increases in services remain above average and are driving the inflation rate.
Energy product prices in July 2025 were 3.4 percent lower year-on-year. The rate of decline in energy prices has slowed for the third consecutive month. Declines were observed in both fuel (-4.5 percent) and household energy (-2.6 percent) prices. Consumers benefited from lower prices for firewood, wood pellets and other fuels (-5.3 percent), as well as light heating oil (-5.0 percent). Electricity (-2.0 percent) and district heating (-1.8 percent) also saw price decreases. Natural gas, however, was slightly more expensive than the previous year (+0.3 percent).
Food prices in July were 2.2 percent higher year-on-year, marginally above the overall inflation rate. The increase in food prices was slightly lower in June, at +2.0 percent. Between July 2024 and July 2025, the most significant price increases were seen in fruit (+7.6 percent) and sugar, jam, honey and other confectionery (+5.6 percent). Dairy products and eggs also saw a considerable price rise (+4.1 percent). More moderate increases were seen in fish, seafood and marine products (+0.9 percent) and bread and cereals (+0.7 percent).
Vegetable prices, conversely, were 3.2 percent lower than the previous year. Significant price increases, such as chocolate (+18.6 percent), were offset by notable declines, including sugar (-29.4 percent) and potatoes (-16.1 percent).
Excluding energy, the inflation rate remained unchanged at +2.6 percent in July, mirroring the June figure. Core inflation-excluding food and energy-also held steady at +2.7 percent. These figures have remained consistently above the overall inflation rate for over a year, indicating that price increases in other key areas are exceptionally high.
Service prices increased by 3.1 percent year-on-year in July, down from +3.3 percent in June. The largest price increases were observed in combined passenger transport (+11.3 percent), letter and parcel services (+9.0 percent) and social care services (+8.2 percent).
Other services, such as insurance (+5.8 percent), vehicle maintenance and repair (+5.7 percent), restaurant services (+4.1 percent) and water supply (+3.9 percent) were also considerably more expensive. Net cold rents also contributed to the rise, increasing by +2.0 percent. Fewer services saw price declines, with international flights (-6.8 percent) and telecommunications services (-1.4 percent) being the exceptions.
Overall, goods prices increased by 1.0 percent between July 2024 and July 2025 (compared to +0.8 percent in June). Consumer goods rose by 1.1 percent, while capital goods increased by 0.9 percent. In addition to rising food prices (+2.2 percent), significant price increases were seen in non-alcoholic beverages (+7.5 percent, including coffee, tea and cocoa: +16.6 percent) and tobacco products (+6.0 percent).
Minor price increases were observed in furniture and lighting (+0.7 percent) and clothing (+0.9 percent). Price decreases were limited to energy (-3.4 percent), mobile phones (-5.1 percent), data processing equipment (-4.5 percent) and electric household appliances (-2.6 percent).
Compared to June, the Consumer Price Index (CPI) increased by 0.3 percent in July. International air tickets (+12.7 percent) and package holidays abroad (+10.7 percent) were primary drivers of this increase during the summer travel season. Overall energy prices rose by 0.4 percent, driven by increases in heating oil and fuels (+0.8 percent) and solid fuels (+1.1 percent).
Food prices remained largely stable overall (-0.1 percent), with increases in meat and meat products (+0.8 percent) offset by declines in fresh fruit (-0.9 percent) and fresh vegetables (-1.4 percent). Clothing prices also fell (-3.5 percent), likely due to seasonal factors.
