Inflation in Germany in 2026: Current Rate and Trends Over the Last 12 Months

Current Inflation Rate in Germany

According to the latest official data ¹, in January 2026 the annual inflation rate in Germany was 2.1%. An analysis of inflation shows that price trends over the year have remained stable.

The annual inflation rate in Germany as of January 2026 is 2.1 %. This means that on average, the prices of all goods and services bought by private individuals in Germany have increased over the past year by 2.1 %.

Inflation Trends Over the Last 12 Months

Table 1 shows how inflation in Germany has changed over the past 12 months. The figures reflect the annual inflation rate for each month — in other words, how much prices have risen compared to the same month last year. Chart 1 gives a visual overview of how inflation has changed throughout the year.

Table 1. Inflation Rate (Inflationsrate) and CPI (VPI) for the Last 12 Months

Chart 1. Recent Changes in Monthly Inflation Rate

The highest inflation rate in the last 12 months was recorded in September 2025 at 2.4 %.

The average inflation rate over the last 12 months is 2.2 %. This figure shows the average change in prices over the past year and helps to understand the general trend.

An analysis of inflation shows that price trends over the year have remained stable and continue to affect people’s purchasing power.

It’s important to remember that there can be seasonal price changes throughout the year. For example, changes in energy prices, food, or transport can temporarily speed up or slow down overall inflation.

You can get a better idea of price changes by looking at inflation not only by month but also by year. Long-term trends help you see whether current inflation is high compared to previous years or within normal economic changes. Detailed information about inflation trends in Germany by year is available on a separate page with average annual figures for previous years.

Main Reasons for Inflation in Germany

Inflation does not happen on its own. Price increases are usually caused by a combination of economic factors — both inside and outside the country. Below are some of the main reasons affecting inflation in Germany this year.

1. Rising energy prices.

The cost of electricity, gas and fuel directly affects overall prices. As energy becomes more expensive, companies’ costs go up, which leads to higher prices for goods and services.

2. Higher business costs.

Increasing wages, higher prices for raw materials, energy and logistics, and more competition also raise company expenses. To cover these costs, businesses raise prices for customers.

3. External economic factors.

Germany is closely linked to the world economy. Changes in global market prices, exchange rates, geopolitical events and crises can all affect domestic prices.

4. Price increases for certain goods and services

One key reason for inflation is rising prices for specific groups of goods and services. See more about price increases for goods and services in Germany on a separate page.

5. Other reasons

There are also many other factors that cause inflation, such as: EU monetary policy, high demand for goods and services, changes to taxes and charges.

Inflation in Germany is caused by several factors acting at once. Understanding these reasons helps you see whether price rises are temporary or reflect longer-term changes in the economy.

Inflation directly affects everyday life in Germany. When prices go up, purchasing power falls — you can buy less with the same amount of money than before. This is especially noticeable for food, rent, utilities and fuel. Since incomes usually rise more slowly than prices, people’s real incomes go down. Inflation also affects loans, interest rates and savings: when inflation is high, banks often raise rates and savings lose some of their real value.

Inflation Forecast for Germany

Inflation forecasts help you understand how prices might change over the next few months. The estimates are published by economic institutes, research centres and the European Central Bank ². Forecasts are usually based on current price trends, economic conditions, interest rates and what’s happening on world markets.

It’s important to remember that any forecast is only an estimate and can change if the economic situation changes. So inflation figures are regularly reviewed as new data becomes available.

Last updated:
6 Feb 2026