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Economic Buzz: German inflation slows to 2% in December

16-Jan-26 15:01 Hrs IST

Germany's harmonized inflation eased to the 2 percent target towards the end of the year, final data from Destatis confirmed on Friday.

The harmonized index of consumer prices rose 2.0 percent on a yearly basis in December, following a 2.6 percent gain in the previous month.

Likewise, consumer price inflation weakened to 1.8 percent from 2.3 percent in each of the previous two months. The latest inflation rate was the slowest since September 2024 and also matched the provisional estimate.

Excluding food and energy, core inflation weakened to 2.4 percent from 2.7 percent a month ago.

On a monthly basis, the HICP climbed 0.2 percent and the CPI remained flat in December. Both rates were in line with the initial estimates.

In 2025, CPI inflation averaged 2.2 percent, the same rate as seen in 2024 and weaker than the 5.9 percent posted in 2023.

Core inflation softened to 2.8 percent in 2025 from 3.0 percent in 2024.

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