Final CPI data confirms a pickup in headline inflation, though core prices show slight easing amid persistent energy pressures.
Germany’s annual inflation rate climbed to 2.8% in July, matching preliminary estimates and up from 2.3% in June. The increase was driven by a sharp 23.0% year-on-year rise in fuel prices following the expiry of a fuel rebate at the end of June.
Core inflation eased marginally to 2.4% from 2.5% in June, while services inflation slowed to 2.9% from 3.1%. Food price inflation held steady at 2.5%. Energy prices remained a key upward pressure, keeping overall price levels elevated.
The data reinforces expectations that the European Central Bank will maintain a cautious stance, with further policy action possible in September amid geopolitical risks and persistent inflationary pressures.