FX.co ★ Germany Inflation Accelerates Beyond Estimates

Germany experienced a rise in its annual inflation rate for the second month in a row, reaching 2.4% in September 2025. This is an increase from 2.2% in August, surpassing the predicted 2.3%, according to preliminary figures. This latest rate represents the highest inflation observed in 2025. Both goods and services saw a price boost, with goods inflation climbing to 1.4% from 1.3%, and services inflation increasing to 3.4% from 3.1%. While energy costs continued to decrease, the decline was less pronounced than before (-0.7% compared to -2.4%), and food inflation slowed to 2.1% from the previous 2.5%. Meanwhile, core inflation moved up slightly from 2.7% to 2.8%. On a month-over-month basis, consumer prices rose by 0.2%, following a 0.1% increase in August. Additionally, the EU-harmonised Consumer Price Index (CPI) grew by 2.4% year-over-year and by 0.2% month-over-month.