German service prices saw a broad-based increase in the third quarter of 2025, signaling persistent inflationary pressures across various sectors. According to data released by Destatis, prices rose 1.9% compared to the same period in 2024 and 0.5% compared to the previous quarter. The increases are largely attributed to rising costs for personnel, materials and energy, reflecting ongoing challenges in the German economy.
The transportation and warehousing sector demonstrated a mixed picture. While overall prices were marginally above those of Q3 2024, significant declines were observed in sea and coastal shipping, dropping a substantial 19.4% year-on-year. This reflects a glut of capacity on routes between Europe, North America and Asia, driven by decreased demand and lower bunker oil surcharges. Simultaneously, prices for postal, courier and express services surged by 5.7%, while storage and associated services saw a 3.0% increase, indicating specific pinch points within the logistics network.
The information and communication technology (ICT) sector also experienced notable price increases, rising 1.6% compared to Q3 2024. This was fueled by increased overhead costs, elevated wages and adjustments made at the beginning of the year. Software and software license prices saw the most significant rise within the sector, jumping 2.2%. The trend also impacted IT consulting and support, adding to concerns amongst businesses adopting new technologies. While wired telecommunications saw a slight increase, wireless communication experienced a marginal price decline.
Real estate and housing costs also increased, with a 2.0% jump year-on-year, driven in part by rising rental rates for both residential and commercial properties. A noticeable 2.4% increase was observed in brokerage and property management fees, raising concerns amongst landlords and prospective buyers.
Specialized professional services, including legal and tax consulting, demonstrated a relatively strong 2.8% year-on-year price increase. New compensation structures implemented mid-year, specifically raising fees for legal and tax advisory services, contributed significantly to the surge. Legal advisory services saw a particularly sharp increase of 4.8% while tax consulting fees rose by 6.9%.
Administrative and support services recorded the most substantial rise across the entire service sector, increasing by 3.2% compared to the previous year. A particularly significant 4.9% rise in cleaning services, largely due to year-end tariff increases, added to the general upward price trend. Notably, the temporary provision of labor rose by 3.8%, partially driven by rising operational costs and a persistent shortage of skilled labor, highlighting broader workforce challenges within the German economy. The sustained price pressure signals a growing strain on both businesses and consumers, raising questions about the effectiveness of current economic policies aimed at curbing inflation.