Germany's Inflation Rate Drops to 2.3% in January, Surprising Economists
Lower energy costs and a slowdown in food price increases contributed to the unexpected decline in inflation, though some sectors continue to see rising prices.
- Germany's inflation rate fell to 2.3% in January 2025, down from 2.6% in December, marking the first decline after three consecutive monthly increases.
- Energy prices dropped by 1.6% compared to January 2024, with decreases in household energy and fuel costs contributing significantly to the overall decline.
- Food prices rose by only 0.8% year-over-year, a notable slowdown from the 2.0% increase recorded in December 2024, offering some relief to consumers.
- However, services such as dining out, insurance, and public transportation saw price increases of 4.0%, with the Germany-wide transit ticket price rising from €49 to €58.
- Economists forecast inflation to remain above the European Central Bank's target of 2.0% in the coming months, with a projected average rate of 2.5% for early 2025.
Stern 
Der Tagesspiegel 
Die Rheinpfalz 
DER SPIEGEL 
Augsburger Allgemeine 
WELT 
Frankfurter Allgemeine Zeitung 
Sächsische Zeitung 