The Federal Statistical Office (Destatis) has confirmed an inflation rate of 2.0 percent for June 2025, mirroring a preliminary estimate released at the end of the month. This marks the lowest rate since October 2024, when it also stood at +2.0 percent.
The inflation rate had been +2.1 percent in both May and April 2025. “The inflation rate has eased slightly again in June and reached the lowest level in the first half of the year” stated Destatis President Ruth Brand. “In addition to the continued falling energy prices, the increase in food prices has notably subsided”. She added that service sector price increases continued to be a significant driver of inflation. Consumer prices remained unchanged in June 2025 compared to May 2025.
Energy product prices in June 2025 were 3.5 percent lower than in the same month of the previous year. The rate of decline was again less pronounced than in recent months; in May 2025 it was -4.6 percent and in April 2025 it was -5.4 percent. Year-on-year, fuel prices declined by 4.6 percent, while household energy prices fell by 2.8 percent. Consumers benefited from lower prices for firewood, wood pellets and other fuels (-5.6 percent), light heating oil (-5.6 percent) and electricity (-2.4 percent). Prices for district heating remained virtually unchanged at -0.1 percent, while natural gas prices increased slightly at +0.1 percent compared to the previous year.
Food prices were 2.0 percent higher in June 2025 compared to the previous year, aligning the rate of food price increases with the overall inflation rate. In May, the rate had been +2.8 percent. A significant price increase was observed for fruit year-on-year (+7.4 percent), as well as for sugar, jams, honey and other confectionery (+5.3 percent) and dairy products and eggs (+3.6 percent).
Dramatic price increases, such as those seen for chocolate (+17.4 percent), were offset by notable price decreases, such as those for sugar (-28.6 percent). Modest price increases were also observed for fish, fish products and seafood (+0.6 percent) and bread and baked goods (+0.5 percent), while vegetables decreased in price (-3.0 percent, including potatoes: -11.2 percent).
The inflation rate excluding energy stood at +2.6 percent in June. The inflation rate excluding food and energy, often referred to as core inflation, was +2.7 percent. Both indicators have been above the overall inflation rate since January 2024, indicating above-average price increases in other important areas.
Service sector prices were 3.3 percent higher in June compared to the same month of the previous year, a slight decrease from the +3.4 percent increase observed in May. Year-on-year increases were particularly evident in combined passenger transport (+11.4 percent), social facility services (+8.5 percent) and insurance premiums (+8.1 percent), as well as in stationary healthcare services (+6.5 percent) and vehicle maintenance and repair (+5.6 percent).
Other services, such as water supply and related services, restaurant visits (both +4.1 percent) and package holidays abroad (+3.8 percent), were also significantly more expensive than a year earlier. Net cold rental rates remained an important factor in service price developments at +2.0 percent. Conversely, a limited number of services decreased in price compared to the previous year, including telecommunications (-1.4 percent) and airline tickets (-1.3 percent).
Overall, goods prices increased by 0.8 percent from June 2024 to June 2025. In May, the increase had been +0.9 percent. In June, consumer goods prices rose by 1.1 percent and durable goods prices increased by 0.5 percent. Alongside the increase in food prices (+2.0 percent), other goods also saw notable increases, including non-alcoholic beverages (+7.9 percent, including coffee and similar products: +19.8 percent), tobacco products (+6.4 percent) and passenger cars (+4.0 percent). Conversely, price decreases were seen in addition to energy (-3.5 percent), mobile phones (-7.1 percent), information processing devices (-3.8 percent) and clothing (-0.5 percent).
The consumer price index remained unchanged in June compared to May, according to Destatis. Prices increased during the month primarily for package holidays abroad (+6.3 percent) and airline tickets (+4.9 percent). Energy prices overall remained unchanged (0.0 percent). Light heating oil increased (+3.5 percent), while firewood, wood pellets and other solid fuels decreased (-0.5 percent). Overall food prices decreased (-0.5 percent, including vegetables: -2.2 percent; fruit: -0.8 percent). Prices for clothing (-1.9 percent) and shoes and accessories (-0.8 percent) also decreased.
