Overview
- Preliminary Destatis data show consumer prices up 1.8% year over year in December, flat on the month, with full‑year 2025 inflation at 2.2% and core inflation estimated at 2.4%.
- Services rose 3.5% in December, while energy prices fell 1.3% and food increased 0.8%, underscoring lingering pressure from labor‑intensive sectors.
- On a harmonised basis used by the ECB, inflation was 2.0% in December year over year and 2.3% for 2025 as a whole, with a 0.2% monthly gain.
- A Forsa survey for the consumer group vzbv finds 58% of people worried about living costs and 68% feeling food price increases most, prompting calls for clearer labelling of shrinkflation and an independent price‑monitoring body.
- Economists expect inflation to hover near 2% in 2026—ifo projects 2.2% next year and 2.3% in 2027—with wage growth and the new minimum wage seen keeping services prices elevated even as energy relief persists.