German inflation holds its ground
The German inflation rate remained at 2.0% in July and the core rate remained at 2.7%, as in the previous month.
Dr. Ralph Solveen
Commerzbank Economic Research
07/31/2025
Price pressure in the services sector continues to ease, probably because wage costs are rising more slowly and companies are finding it more difficult to pass on higher costs to their customers. The core inflation rate is likely to stabilize just above the 2% mark due to the somewhat stronger economy. Based on the national figures available so far, the inflation rate for the eurozone is also expected to be 2.0% in July.
The figures for German consumer prices in July did not bring any major surprises: compared with the previous month, they rose by 0.3%, meaning that the inflation rate – i.e. the change compared with the same month last year – remained at 2.0%, as in June. Additionally, there was little movement in energy and food inflation, as well as in the core inflation rate, which excludes these two often highly volatile components. This core rate stagnated at 2.7%.
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