Germany’s service sector prices experienced a broad-based increase in the third quarter of 2025, signaling persistent inflationary pressures despite government efforts to stabilize the economy. According to data released by the Federal Statistical Office (Destatis), prices rose by 1.9% compared to the same period in 2024 and by 0.5% compared to the second quarter of 2025. The increases were largely driven by rising costs for personnel, materials and energy across numerous sectors.
The transport and warehousing sector demonstrated mixed trends. While overall prices increased marginally at 0.3% year-on-year, specific areas like postal, courier and express delivery services saw a significant rise of 5.7%, attributed to escalating fuel costs linked to the CO2 levy and wage increases. Storage and related services also jumped by 3.0%. Conversely, sea and coastal shipping experienced a dramatic price decline of 19.4%, largely due to overcapacity on routes between Europe and North America/Asia and lower bunker fuel surcharges – a clear indication of weakened global trade demand. Forwarding services also suffered a decline.
Within the information and communication technology (ICT) sector, prices climbed by 1.6% influenced by cost adjustments at the start of the year, coupled with wage and salary increases. Software and software licenses witnessed the most substantial price increase at 2.2%, alongside a noticeable rise in IT consulting and support services. While wired telecommunication services saw a slight price increase, wireless services experienced a marginal decline, a potential indicator of competitive pressures in the mobile market.
The real estate sector recorded a 2.0% price increase, with residential and commercial rent increases slightly lower at 1.9%. Property brokerage and management services saw a more significant jump, partly explained by contractual price indexing tied to specific economic indicators.
The professional, scientific and technical services sector demonstrated a relatively strong price increase of 2.8%, driven by year-end price adjustments in response to rising general costs and wage hikes. The introduction of new remuneration structures for legal and tax advisory services mid-year further contributed to this rise, with legal consulting services seeing an especially significant price surge – 4.8% year-on-year. Tax consulting services also saw a considerable increase of 6.9%.
Administrative and support services witnessed the largest price increase across all service sectors, rising by 3.2% overall. Cleaning services rose dramatically, by 4.9%, largely attributable to year-end tariff increases. Temporary staffing agencies also experienced above-average price increases of 3.8%, citing rising operating costs and ongoing difficulties in attracting skilled workers – a worrying development for employers and potentially hindering economic growth. The persistent wage pressures and escalating costs across various sectors are prompting a critical reassessment of Germany’s long-term economic competitiveness and the effectiveness of current government policy initiatives.
