Germany’s CPI Holds Steady at 2.1 % in January 2026

Germany’s CPI Holds Steady at 2.1 % in January 2026

The Federal Statistical Office (Destatis) confirmed the consumer‑price inflation rate for January 2026 at 2.1 %. Earlier in the month a provisional estimate had already been released. In December 2025 the index had risen by 1.8 %, and in November and October it had been 2.3 % each.

Destatis President Ruth Brand said that overall price rises have accelerated at the start of the year, noting that food prices in January moved up more sharply than in preceding months. From September to December 2025 the rate of increase for food remained below the overall inflation rate, and the rise in service prices also added to the January figure.

Energy prices as a whole were 1.7 % lower in January 2026 than in the same month a year earlier. In December 2025, the headline energy index had fallen by 1.3 %. From January 2025 to January 2026 household energy costs dropped by 3.2 %. Consumers benefited from lower electricity prices (-3.2 %), largely due to reduced transmission network fees introduced earlier this year. Gas (including levies) fell by 2.5 % and district heating by 0.8 %, helped by the elimination of the gas‑storage levy. Fossil‑fuel prices were also influenced by the partial rise in CO₂ pricing at the start of the year: light heating oil was 10.2 % cheaper than in January 2025, while fuel prices rose by 0.5 %.

Food prices were 2.1 % higher in January 2026 than a year earlier, after a 0.8 % increase in December. From September to December the food sector had risen below the annual average. Compared with January 2025, notable rises were observed in sweets – sugar, jam, honey and other confectionery – up 10.9 %, with chocolate up 21.0 %; fruit increased by 6.1 %; and meats by 4.9 % (beef and veal up 14.9 %, poultry up 8.3 %). Conversely, cooking fats and oils fell by 20.1 % (butter -33.0 %, olive oil -13.5 %); dairy products slipped 3.5 % and potatoes 10.1 %; eggs rose 12.5 %.

Inflation excluding energy and the core inflation (excluding food and energy) were both 2.5 % in January 2026, underscoring that price pressures remained high in other key sectors.

Service prices overall were 3.2 % higher than a year earlier, and prices for services had been above the headline inflation rate since January 2024. From January 2025 to January 2026 prices rose notably for welfare‑service facilities (7.1 %) and combined passenger transport (6.2 %), the latter linked to the Deutschlandticket tariff increase from €58 to €63. Other services that increased over the year include vehicle maintenance and repair (5.2 %), health‑insurance services (4.4 %) and water supply and other household services (3.6 %). Hospitality services rose 3.6 % despite the VAT cut on restaurant meals from 19 % to 7 % at the beginning of the year. Net cold rent increased 2.1 %, while few services fell, such as telecommunications (-0.4 %).

Goods as a group rose 1.0 % from January 2025 to January 2026. Consumer goods increased 1.3 % and durable goods 0.4 %. Besides food (2.1 %) many goods were steeper: non‑alcoholic drinks up 6.8 % (coffee, tea, cocoa 18.2 %); tobacco 4.4 %. Prices fell for energy (-1.7 %) and household appliances (-3.1 %).

Compared with December 2025 the consumer‑price index rose 0.1 % in January. Food overall increased 1.0 % month‑on‑month, driven primarily by fresh vegetables (+6.1 %). Energy prices rose 0.8 % from the previous month, mainly due to fuel price hikes (+5.6 %). Electricity fell 2.8 %, gas (incl. levies) 2.4 %, district heating 1.6 %. The reductions in transmission network fees and the removal of the gas storage levy contributed to lower energy prices. The increase in the Deutschlandticket was reflected in the rise in local passenger transport (+2.8 %) and in combined fare cards (+5.2 %). Seasonal declines were seen in air‑ticket prices (-16.7 %), package holidays (-14.1 %) and clothing (-5.5 %).