Overview

• Germany’s consumer price index held steady at 2.0% year-on-year in July, matching June’s rate and exactly aligning with the ECB’s long-term goal.
• Service prices climbed by 3.1% and food costs rose by 2.2%, the largest upward contributors to overall inflation.
• Energy prices fell by 3.4% compared with July 2024, exerting downward pressure on the headline rate.
• Core inflation excluding food and energy remained elevated at 2.7%, signaling persistent underlying price pressures.
• The ECB paused its rate-cut cycle after seven consecutive cuts and signaled it will stay data-dependent