Inflation in Germany Climbs to 2.4% in September

Consumer prices in Germany increased for the second time this year in September, marking a significant year-on-year rise. According to preliminary estimates from the Federal Statistical Office in Wiesbaden, the inflation rate reached 2.4 percent compared to September 2024, the highest increase in 2025 so far.

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Change compared to the same month last year in %

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Prices for services continued to rise above average, increasing 3.4 percent year-on-year. Public transport costs jumped by 11.2 percent, social services by 8.2 percent, and inpatient healthcare services by 6.5 percent compared to September 2024. Insurance premiums also rose 6.5 percent year-on-year. Ruth Brand, head of the Statistical Office, highlighted that net cold rents remained a significant factor in overall price development, climbing 2.0 percent compared to September 2024, impacting a substantial portion of household incomes.

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Energy prices, which had previously helped dampen inflation, contributed less this month. Energy products were 0.7 percent lower than in September 2024, but fuel prices increased 1.1 percent, marking the first rise since May 2024. Gas and heating oil were also slightly more expensive than a year ago.

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Food prices rose 2.1 percent year-on-year in September, the first time since January that the increase was below average. However, chocolate and coffee saw price jumps of over 21 percent, confectionery by 6.5 percent, and fruit by 5.1 percent compared to September 2024. Conversely, olive oil dropped 22.6 percent year-on-year.

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Silke Tober, monetary policy expert at the Institute for Macroeconomics and Economic Research (IMK) of the Hans-Böckler-Stiftung, described the 2.4 percent rise as an “outlier.” She stated it was partly due to last year’s record low in crude oil prices and partly because of an unusually strong increase in overnight accommodation prices in North Rhine-Westphalia, Germany’s largest state. Tober added, “Already in October, inflation is likely to be very close to the European Central Bank’s target of two percent.”

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