Consumer prices
Lowest has since autumn: 2.0 percent inflation in June
Good news for Germany’s consumers: The inflation rate continues. However, economists do not want to give the all -clear.
Something relaxation for Germany’s consumer: With 2.0 percent inflation, life in this country in June was as little more expensive as in October 2024. In March, consumer prices were 2.2 percent above the level of the previous year, in April and May it was 2.1 percent. From May to June 2025, the price level remained unchanged.
“In addition to the still falling energy prices, the price lift in particular decreased in the event of food,” said the President of the Federal Statistical Office, Ruth Brand, when confirming the provisional figures. “In contrast, inflation -spreading still had an above -average inflation of services.”
Oil price as a decisive factor
According to economists, the inflation continues to largely depend on the oil prices. The war between Israel and Iran had increasingly increasing the prices for crude oil and petrol – the relaxation and the falling oil price recently arrived at the petrol pump.
“At least in the short perspective, the German inflation should continue its downward trend and will probably fall below two percent in the coming months,” predicts Ing chief economists Carsten Brzeski.
“Caution is still on offer”
Economists, however, point out that the so -called core inflation – i.e. the rate without the prices for food and energy that is prone to fluctuation – is still increased: after 2.8 percent in May it was 2.7 percent in June. Caution is therefore still required, argues DZ-Bank chief economist Michael Holstein: “The price and wage pressure is particularly available in the service sector.”
For months above average inflation for services
The increased inflation of services has been persistent for months. In June, prices rose by 3.3 percent in this area and thus only imperceptibly less than in May. One reason: increased wages. Driving services were 11.4 percent more expensive than a year earlier, insurance increased by 8.1 percent, 4.1 percent more had to be paid for the visit to the restaurant.
Energy in June cheaper than a year ago
According to calculations by the Wiesbaden statisticians, energy was 3.5 percent cheaper than a year earlier in June. This dampens the inflation rate. However, the difference in the same month of the previous year in April and May was even greater.
In June 2025, the prices for fuels (minus 4.6 percent) decreased in June 2025. Fuels such as heating oil and wood pellets (each minus 5.6 percent) and electricity (minus 2.4 percent) were also cheaper.
Increase in food prices flakes
At the same time, price increases for food with 2.0 percent in June were lower than in the previous months. When shopping, consumers nevertheless notice this: fruit (plus 7.4 percent) and dairy products (plus 3.6 percent) have been more expensive than the entire shopping cart. Coffee cost 19.8 percent more than a year earlier in June, chocolate prices attracted 17.4 percent, butter was 13.9 percent more expensive.
No wonder that, despite the downward trend, inflation is still one of the greatest concerns of Germans: a good 40 percent out of 1,000 adults who were interviewed for the direct bank InG at the beginning of June named the inflation as the greatest burden with a view to its own financial situation – just behind the general situation in Germany (around 44 percent).
About two percent inflation expected in the year as a whole year
The Bundesbank assumes that the inflation rate in Germany will fluctuate for the two percent mark in the coming months. The Council of Experts (“Economic”) expects that a value will come out by two percent in 2025.
In 2022, inflation in Germany was 6.9 percent sneaked, in 2023 it was 5.9 percent. After the Russian attack on Ukraine in February 2022, the prices for energy and food had climbed suddenly. In the past year, the inflation dropped to 2.2 percent. The higher the inflation rate, the lower the purchasing power of the people.
dpa
Source: Stern
