BERLIN, Jan. 16 (Xinhua) -- Germany's inflation rate slowed to 1.8 percent in December, falling below the 2-percent mark for the first time last year, as lower energy costs and a moderation in food price growth eased inflationary pressures, official data showed on Friday.
The December reading brought full-year inflation in 2025 to 2.2 percent, the same level as in 2024, according to the Federal Statistical Office (Destatis).
"The development of consumer prices has therefore stabilized after the inflation rate markedly exceeded the 2-percent mark in the preceding years," Destatis president Ruth Brand said.
Inflation in Europe's largest economy rose to 3.1 percent in 2021, marking its highest level in nearly 30 years. Then in 2022 and 2023, the rate climbed further to 6.9 percent and 5.9 percent, respectively, driven by a surge in energy and food prices during the Russia-Ukraine conflict.
As energy prices fell 2.4 percent in 2025 from a year earlier and food prices rose by 2 percent, this helped curb overall inflation for the year, Destatis said. By contrast, services prices continued to rise at a brisk pace, increasing 3.5 percent over the year, driven in particular by higher costs for social services, insurance and inpatient medical care.
The Federal Ministry for Economic Affairs and Energy said it expects consumer price inflation to hover slightly below or around 2 percent in the coming months. While services price pressures are likely to persist in the near term, further declines in energy costs and recent falls in agricultural commodity prices could help dampen price growth, it added.
Meanwhile, the ifo Institute noted that higher public transport fares and a rising minimum wage could add to inflationary pressures in 2026. ■