FX.co ★ German Inflation Rate Confirmed at 6-Month Low

Germany's consumer price inflation rate held steady at 2.1% in April 2025, the lowest level observed since October 2024, continuing a two-month trend of declining inflation. The inflation rate for goods notably decreased to 0.5% from March's 1.0%, largely attributed to a significant reduction in energy prices, which fell by 5.4% compared to a 2.8% drop previously. This decline was driven by lower costs for motor fuels, solid fuels, and heating oil, alongside a milder increase in food prices, which rose by 2.8% compared to 3.0% in March. Conversely, inflation within the services sector accelerated to 3.9%, marking a three-month peak from a previous 3.5%. Core inflation, excluding volatile items such as energy and food, increased to 2.9%, up from a more than three-year low of 2.6% in March. On a month-to-month basis, consumer prices rose by 0.4%, following a 0.3% increase in the prior month. In parallel, the EU-harmonised inflation rate saw a year-over-year climb of 2.2%, down slightly from a 2.3% rise in March. Monthly, harmonised consumer prices experienced a 0.5% uptick, easing slightly from a previous 0.4% increase.