German Inflation Holds Steady at 2.3% in February

Despite a slight monthly increase in prices, economists predict a gradual decline in inflation throughout 2025.

The overall inflation rate in Germany remained at 2.3% in February, unchanged from January, according to preliminary data from the Federal Statistical Office.
Regional variations were observed, with inflation rates ranging from 1.9% in North Rhine-Westphalia to 3.0% in Saxony-Anhalt.
Energy prices continued to decline, with household energy costs dropping by 2.9% year-over-year, while food prices rose by 2.4%, driven by increases in items like dairy and eggs.
Core inflation, excluding volatile energy and food prices, decreased to 2.6% in February from 2.9% in January, reflecting a broader trend of moderation.
Economists and the Bundesbank anticipate inflation to average slightly above 2% in 2025, with a return to the European Central Bank's 2% target expected by 2026.