Germany’s consumer price inflation picked up at the start of 2026, with the January Consumer Price Index (CPI) rising 2.1% year-over-year, up from 1.8% in December 2025. The latest data, updated on 30 January 2026, indicate a modest re-acceleration in price growth after several months of relatively subdued inflation.
The January figure compares the level of prices in January 2026 with those in January 2025, while the previous 1.8% reading reflected the change in December 2025 versus December 2024. The move from 1.8% to 2.1% suggests that inflationary pressures in Europe’s largest economy are firming again on an annual basis, potentially reinforcing expectations that price growth may be stabilizing closer to, or slightly above, typical central bank targets.
For markets and policymakers, the uptick will be closely watched as they gauge how persistently inflation might hover around current levels. While the increase is not dramatic, it marks a reversal from the lower December reading and may influence expectations around the future path of interest rates and broader monetary conditions in the euro area.
