German inflation eases towards the close of 2025

German Inflation Eases Further in December

In December, Germany's national headline inflation rate declined to 1.8% year-over-year, down from 2.3% in November. The harmonized European inflation metric also saw a decrease, falling to 2.0% from the previous month's 2.6%. Meanwhile, core inflation edged lower to 2.4% year-over-year, and inflation in the services sector held steady at 3.5%.

Regional data indicates that the reduction in inflation was influenced not only by lower energy costs but also by price drops in categories such as leisure, apparel, and food compared to November. The decrease in food prices, in particular, is likely to be a positive development for consumers in Germany.