Inflation in Germany stood at 2,1% year-on-year in January 2026, provisional data confirmed by the Federal Statistical Office and up from the 1,8% recorded in December, signaling an intensification of price dynamics at the start of the year after the slowdown observed at the end of 2025. On a monthly basis, the consumer price index rose by 0,1%, while the Harmonized European Index of Consumer Prices (HICP), used for comparison in the euro area, also recorded an annual increase of 2,1% but a quarter-on-quarter decline of 0,1%, reflecting methodological and weighting differences between the two indicators.
Food and services are primarily driving the recovery in inflation, while the energy sector continues to exert a dampening effect on the overall figure, with energy prices 1,7% lower than in January 2025, albeit slightly recovering from the previous month. Specifically, household energy prices fell 3,2% year-on-year, with electricity down 3,2%, gas down 2,5%, and district heating down 0,8%. This trend was influenced by the reduction in electricity grid charges and the abolition of the gas storage neutrality contribution, while the increase in the price of CO₂ had a negative impact on some fuel components. Heating oil remains significantly cheaper than a year ago (-10,2%), but automotive fuels rose 0,5% year-on-year and 5,6% compared to December, contributing to the positive monthly change in the overall index.
Food prices are trending more markedly, rising 2,1% year-on-year in January, a sharp acceleration from the 0,8% increase in December and following several months in which the sector had shown lower-than-average increases. Among the food items, significant increases were observed for sugar, jams, honey, and confectionery (+10,9%), with chocolate alone rising 21%, as well as fruit (+6,1%) and meat (+4,9%), with peaks of +14,9% for beef and veal and +8,3% for poultry, while eggs recorded a 12,5% increase.
Edible fats and oils, on the other hand, bucked the trend, declining 20,1%, with butter down 33% and olive oil down 13,5%, as well as dairy products (-3,5%) and potatoes (-10,1%), which only partially eased the pressure on the shopping cart. Core inflation, calculated excluding energy and food, stood at 2,5%, higher than the overall index, highlighting how price pressures remain widespread in other sectors of the economy. Services, in particular, grew 3,2% year-over-year and continue to represent the most dynamic component of German inflation, with significant increases in social services (+7,1%) and combined passenger transport (+6,2%), partly due to the increase in the national ticket price from 58 to 63 euros.
Significant price increases were also recorded for vehicle maintenance and repair (+5,2%), health insurance (+4,4%), water and related housing services (+3,6%), and food services (+3,6%), while net rents, excluding heating, rose by 2,1% and continue to provide a structural contribution to overall price dynamics. Among goods, the average annual increase is 1,0%, with non-alcoholic beverages at +6,8% – driven by coffee, tea, and cocoa (+18,2%) – and declines affecting mainly household appliances (-3,1%) and energy. Compared to December 2025, the 0,1% monthly increase is primarily driven by higher food prices (+1,0%), particularly fresh vegetables (+6,1%), and fuel. Reductions were also observed for electricity, gas, airline tickets, and vacation packages, also due to seasonal factors. The picture emerging at the beginning of 2026 is therefore one of more selective German inflation, with declining energy prices dampening the overall index, but with services and food prices once again exerting significant pressure on household budgets and, indirectly, on pricing strategies along the supply chain.
