Berlin: Cheap energy and lower food prices drove German inflation down to 1.8 percent in December, the Federal Statistical Office said on Friday as it confirmed preliminary figures published earlier this month. The December reading brought full-year inflation in 2025 to 2.2 percent, the same level as in 2024.
According to Emirates News Agency, core inflation, a measure that excludes volatile prices of food and energy, remained high at 2.8 percent in 2025. Consumer prices rose by 2.2 percent on average last year, the Wiesbaden-based agency confirmed, unchanged from 2024.
Pressure on household budgets eased in December, with the inflation rate dropping below the European Central Bank’s 2 percent target for the first time since September 2024. While the price of services such as public transport and insurance rose 3.5 percent, food prices were only 0.8 percent higher than in December 2024.
Energy prices were 1.3 percent lower in December 2025 and 2.4 percent lower in the full year compared to 2024. In addition, higher prices for public transport and a rising minimum wage could drive further inflation next year, the agency said.
