The Federal Statistical Office (Destatis) has confirmed an inflation rate of 2.0 percent for July 2025. This figure aligns with a preliminary estimate released at the end of July and remains consistent with the 2.0 percent recorded in June 2025, following rates of 2.1 percent in both May and April.
“The inflation rate has stabilized since the beginning of the year, remaining unchanged for two consecutive months” stated Destatis President Ruth Brand. “The decline in energy prices continues to dampen overall inflation. However, prices for services remain notably high and are contributing to the overall rate.
Energy product prices in July 2025 were 3.4 percent lower year-on-year. The rate of decline in energy prices has slowed for the third consecutive month. Price reductions were observed in fuels (-4.5 percent) and household energy (-2.6 percent). Consumers benefited from lower prices for firewood, wood pellets and other fuels (-5.3 percent), as well as light heating oil (-5.0 percent). Electricity (-2.0 percent) and district heating (-1.8 percent) also became cheaper compared to the previous year. Natural gas, however, saw a slight price increase (+0.3 percent).
Food prices in July were 2.2 percent higher year-on-year, slightly exceeding the overall inflation rate. The increase in food prices was marginally lower at +2.0 percent in June. Between July 2024 and July 2025, the most significant price increases were observed for fruit (+7.6 percent) and sugar, jam, honey and other sweets (+5.6 percent). Dairy products and eggs also saw a considerable price increase (+4.1 percent). Modest price increases were observed for fish, seafood and marine products (+0.9 percent), as well as bread and cereal products (+0.7 percent).
Vegetable prices, however, decreased by 3.2 percent. Significant price increases – such as for chocolate (+18.6 percent) – were countered by notable price reductions, including sugar (-29.4 percent) and potatoes (-16.1 percent).
Inflation excluding energy remained unchanged at +2.6 percent in July, consistent with the June figure. Core inflation, excluding both food and energy, remained at +2.7 percent. These figures have remained above the overall inflation rate for over a year, indicating higher-than-average price increases in other key sectors.
Service prices overall were 3.1 percent higher year-on-year in July, down from +3.3 percent in June. The most significant price increases were recorded for combined passenger transport (+11.3 percent), letter and parcel services (+9.0 percent) and social care services (+8.2 percent).
Other services, such as insurance (+5.8 percent), vehicle maintenance and repair (+5.7 percent), restaurant services (+4.1 percent) and water supply, also saw significant price increases. Net cold rent contributed with +2.0 percent to the price development. Fewer services were cheaper year-on-year, notably international flights (-6.8 percent) and telecommunications services (-1.4 percent).
Overall, prices for goods increased by 1.0 percent between July 2024 and July 2025 (up from +0.8 percent in June). Consumer goods increased by 1.1 percent, while durable goods rose by 0.9 percent. Alongside the increase in food prices (+2.2 percent), notable price increases were seen in non-alcoholic beverages (+7.5 percent, including coffee, tea and cocoa: +16.6 percent) and tobacco products (+6.0 percent).
Minor price increases were recorded for most goods, including furniture and lighting (+0.7 percent) and clothing (+0.9 percent). Price decreases were observed in energy (-3.4 percent), mobile phones (-5.1 percent), information processing devices (-4.5 percent) and electrical household appliances (-2.6 percent).
Compared to June, the Consumer Price Index rose by 0.3 percent in July. International flight tickets (+12.7 percent) and package holidays abroad (+10.7 percent) became notably more expensive during the summer travel season. Energy prices overall rose by 0.4 percent, driven by increases in heating oil and fuels (+0.8 percent), as well as firewood, wood pellets and other solid fuels (+1.1 percent).
Food prices remained largely stable overall (-0.1 percent), with increases in meat and meat products (+0.8 percent) offset by price decreases in fresh fruit (-0.9 percent) and fresh vegetables (-1.4 percent). Clothing prices also decreased (-3.5 percent), partly due to seasonal factors.