- media@moneyinfocus.news
Germany’s annual consumer price inflation slowed more than expected in June 2026, offering further evidence that price pressures in Europe’s largest economy are moderating as energy costs continue to decline.
Preliminary data released by the Federal Statistical Office (Destatis) showed that Germany’s Consumer Price Index (CPI) rose 2.3% year over year, down from 2.6% in May and below economists’ expectations of 2.6%. The reading also marks a continued retreat from the 2.9% annual inflation rate recorded in April, the highest level in more than two years.
The latest moderation was largely driven by easing energy inflation.
Energy prices increased 3.4% from a year earlier, slowing significantly from 6.6% in May. Meanwhile, inflation for goods eased to 1.7%, compared with 2.2% in the previous month.
Food prices remained relatively stable, with annual inflation holding at 0.4%, while services inflation remained elevated at 3.1%, continuing to reflect resilient wage growth and domestic demand.
Core inflation—which excludes the more volatile food and energy categories—was unchanged at 2.5%, suggesting underlying price pressures remain relatively stable despite the broader decline in headline inflation.
Germany’s EU-harmonized inflation rate (HICP) also moderated, slowing to 2.4% year over year from 2.7% in May. The figure came in below market expectations of 2.6%, although it remains modestly above the European Central Bank’s 2% inflation target.
The latest figures are likely to be closely monitored by policymakers as the ECB evaluates the pace of disinflation across the euro area and considers the appropriate path for monetary policy during the second half of the year.
While inflation has continued to ease, persistent services inflation and steady core price growth suggest underlying inflationary pressures have not yet fully returned to the central bank’s target.
