Germany’s annual inflation rate rose to 2.1% in January 2026 from 1.8% in December, in line with preliminary estimates. This latest figure pushed inflation slightly above the European Central Bank’s 2% target midpoint, largely due to higher prices for consumer goods (up 1.3% vs 0.8% previously). Within this category, food prices rose by 1%, and prices for durable goods rebounded (0.4% vs -0.3% in December).
By contrast, services inflation eased to 3.2% from 3.5% but remained elevated by historical standards. Notably sharp price increases were recorded for services provided by social institutions (7.1%) and for combined passenger transport (6.2%), the latter partly reflecting a price hike for the Deutschlandticket (Germany Ticket) from EUR 58 to EUR 63.
On a monthly basis, consumer prices inched up 0.1% after remaining flat in December. Core inflation, which excludes food and energy, edged up to 2.5% from 2.4%. The EU-harmonized consumer price index (HICP) also rose slightly, to 2.1% from 2.0%, confirming earlier estimates.
