FX.co ★ Germany Inflation Slows to 1.9% in February

Germany’s annual inflation rate slowed to 1.9% in February 2026 from 2.1% in January, coming in slightly below market expectations of 2.0%, according to preliminary estimates. The harmonized index of consumer prices (HICP), closely watched by the ECB, also edged down to 2.0% from 2.1%, keeping both gauges broadly in line with the central bank’s 2% target. Goods inflation eased to 0.8% from 1.0%, driven by a sharper decline in energy prices (-1.9% vs. -1.7%) and a pronounced slowdown in food inflation to 1.1% from 2.1%. Services inflation was unchanged at 3.2%, while core inflation, which excludes food and energy, also held steady at 2.5%.