For the first time this year, Germany’s inflation rate has ticked up again. According to the Federal Statistical Office in Wiesbaden, consumer prices in August 2025 were 2.2% higher than in the same month a year earlier, compared to 2.0% in June and July.
“The inflation rate has increased slightly for the first time this year,” said Ruth Brand, president of the statistics office.
Economists expect the trend to continue, with inflation likely to remain above the 2% threshold in the coming months.
From July to August alone, prices rose by 0.1%. For the full year, forecasters anticipate an average rate close to 2%.
Persistent core inflation
While headline inflation has eased compared to the energy shock following Russia’s war in Ukraine, price pressures remain stubborn.
Core inflation—excluding volatile food and energy—has held steady at 2.7% for three consecutive months.
This highlights ongoing structural price pressures that weigh on consumer purchasing power.
Groceries lead the surge: coffee and chocolate soar
Food prices rose 2.5% year-on-year in August, with some products becoming dramatically more expensive:
- Coffee: +22.8%
- Chocolate: +21.3%
- Fruit: +7.1%
By contrast, some staples became cheaper:
- Vegetables: –1.1%
- Potatoes: –17.3%
- Sugar: –29.2%
Service prices also rose by 3.1%, driven by higher labor costs. Passenger transport (+11.1%) and insurance services (+6.4%) became noticeably more expensive. Interestingly, international flights were 8.2% cheaper than in August 2024.
Energy prices: Slowdown in the decline
Energy costs were 2.4% lower than a year earlier. However, the decline was far smaller than in August 2024, when energy prices fell sharply.
This base effect now makes the year-on-year comparison appear as if inflation is accelerating, even though the underlying fall in energy prices is losing momentum.
Consumers in Germany will continue to face pressure
While the dramatic inflation surges of recent years have receded, August’s figures show that Germany is not yet out of the woods.
High food prices, rising service costs, and sticky core inflation suggest that consumers will continue to face pressure, even as energy relief fades.
