German inflation drops to 15-month low
By Benjamin Chiou
Date: Tuesday 06 Jan 2026
(Sharecast News) - German inflation slowed much more than expected in December to its lowest rate in 15 months, according to data out on Tuesday from the Federal Statistical Office.
The year-on-year increase in the consumer price index fell to just 1.8% last month, down from 2.3% in November and well below the 2.0% rate expected by economists.
This was the smallest annual increase in prices since September 2024 and the second-lowest since February 2021.
Goods inflation slowed to just 0.4% from 1.1% the previous month, as food inflation eased to 0.8% from 1.2% and energy deflation deepened to -1.3% from -0.1%.
Core inflation, which strips out the more volatile food and energy elements, fell to 2.4% from 2.7%.
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