Germany’s annual inflation rate slowed slightly in October 2025, reaching 2.3%, according to data from the Federal Statistical Office (Destatis). The rate was marginally lower than 2.4% in September and follows 2.2% in August, signaling a mild easing of price pressures after two consecutive monthly increases.
“After two increases in a row, the inflation rate fell slightly in October,” said Ruth Brand, President of Destatis. “However, prices for services continue to rise at an above-average rate and remain the main inflation driver.”
Month on month, consumer prices increased 0.3%, reflecting moderate cost growth across several sectors, including energy, food, and transport. The latest figures confirm Destatis’ preliminary estimate, pointing to a gradual stabilization of inflation in Europe’s largest economy.
Energy prices continued their downward trend, recording a 0.9% year-on-year decline in October 2025. The decrease was slightly stronger than in September (-0.7%), helping to moderate overall inflation. The cost of household energy fell by 1.7%, largely driven by cheaper heating oil (-6.0%). Electricity (-1.4%) and district heating (-1.0%) also became more affordable compared with the previous year.
However, not all energy sources followed this pattern. Natural gas prices rose 0.9%, and solid fuels such as firewood and pellets became 2.5% more expensive. Meanwhile, motor fuel prices edged up 0.4% from October 2024, showing a modest increase amid fluctuating oil markets. The combined effect of these mixed movements helped offset some of the inflationary pressure from other sectors, particularly services.
Food prices in Germany rose by 1.3% year-on-year in October, marking a clear slowdown from 2.1% in September and the lowest rate since January 2025 (+0.8%). Consumers saw significant price drops in several essential categories. Edible fats and oils recorded a steep decline of 12.6%, driven by sharp reductions in olive oil (-22.7%) and butter (-16.0%). Vegetable prices also fell 4.0%, with potatoes (-12.6%) showing one of the largest decreases.
Despite this easing, some categories remained notably more expensive. Sugar, jam, honey, and confectionery products rose by 8.2%, with chocolate prices surging 21.8%. Meat and meat products (+4.3%) and fruit (+3.1%) also saw above-average increases. Overall, the decline in staple goods helped ease cost burdens, although volatility remains in specific categories.
When excluding energy, inflation stood at 2.5%, slightly below the previous month’s 2.7%. The core inflation rate, which excludes both food and energy, held steady at 2.8%, indicating persistent underlying price pressures.
Service-related costs remained a key driver of inflation. Prices for services overall rose 3.5%, up from 3.4% in September. The largest increases were seen in combined passenger transport (+11.4%), reflecting higher public transport and regional ticket costs, including the Germany Ticket. Prices also climbed for social services (+8.0%), inpatient healthcare (+6.5%), vehicle repair and maintenance (+5.3%), package holidays (+5.1%), and housing-related services (+3.9%).
Housing costs remained stable but continued to add to inflationary pressure, with net cold rents rising by 2.0%. Only a few service categories saw price declines, notably telecommunications services (-0.7%), which offered limited relief to consumers.
Prices for goods increased 1.2% year-on-year, slightly slower than 1.4% in September. Consumer goods rose 1.3%, while durable goods increased 1.0%. Apart from food, non-alcoholic beverages (+7.2%), especially coffee and similar drinks (+21.3%). and used cars (+5.5%) experienced notable price hikes. Moderate increases were also recorded for clothing (+1.2%), furniture, and lighting (+0.9%).
Conversely, several consumer electronics categories became cheaper. Mobile phones (-4.0%) and entertainment devices (-3.2%) saw price declines, reflecting ongoing trends in technology pricing.
Compared with September, the Consumer Price Index (CPI) rose 0.3% in October 2025. The strongest increase came from airfares, which surged 19.4% month-on-month. Energy prices edged up 0.2%, driven by fuel (+0.5%), while heating oil (-0.8%) became slightly cheaper. Food prices remained stable (+0.0%), with sharp declines for butter (-10.0%) and apples (-6.5%) offsetting other small increases.
Overall, the October data confirm a modest easing in Germany’s inflation rate to 2.3%, supported by cheaper energy and slower food price growth. However, the persistent rise in service-related costs, especially in transport and healthcare, underscores that inflationary pressures have not fully subsided. As prices for essential services remain high, inflation is expected to stabilize rather than fall sharply in the coming months, keeping the focus on how core costs evolve through the end of 2025.
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