Germany’s Inflation Rate Rises to 2.1% in January 2026

Germany’s inflation rate increased to 2.1% in January 2026, confirming preliminary data and indicating strengthening price pressures at the start of the year, particularly in the food and services sectors. The figure represents an increase from 1.8% in December 2025 and 2.3% in both November and October 2025 .

Consumer Price Index and Monthly Changes

Consumer prices rose by 0.1% compared to December 2025, with cheaper energy partially offsetting higher costs in other areas, according to the Federal Statistical Office (Destatis) . The harmonised index of consumer prices also registered a 2.1% increase year-on-year, with a -0.1% change from the previous month .

Energy Prices Decline

Energy prices experienced a year-over-year decline of 1.7% in January 2026, continuing a downward trend from the 1.3% decrease observed in December 2025 . Household energy costs fell by 3.2% between January 2025 and January 2026, driven by reductions in electricity prices (-3.2%), gas prices (including charges, -2.5%) and district heating costs (-0.8%) . Lower transmission network charges and the removal of the gas storage levy contributed to these price decreases .

Food Inflation Accelerates

Despite the overall energy price decline, food inflation accelerated, reaching 2.1% compared to January 2024 and increasing from 0.8% in December 2025 . Significant price increases were noted in sweets and chocolate, as well as fruit and meat. However, prices for butter, oils, and potatoes decreased compared to the previous year .

Services and Core Inflation

Core inflation, excluding food and energy, remained elevated at 2.5%, indicating persistent inflationary pressure in other sectors . Services prices rose by 3.2% year-on-year, driven by increased costs in social facilities, transportation, and rent .

“The rise in overall consumer prices intensified at the beginning of the year,” stated Ruth Brand, President of Destatis. “Food prices, in particular, rose more sharply in January than in the preceding months.”