Inflation in Germany, measured as the year-on-year change in the consumer price index, stood at 2.3% in June 2026, the Federal Statistical Office (Destatis) reported Friday. This marks a third straight month of easing, down from 2.6% in May and 2.9% in April. Compared with May, overall consumer prices fell 0.3% in June.
"Energy prices continued to rise faster than average due to the Iran war and remained a key driver of inflation. However, the increase in energy prices was smaller than in the previous month, which curbed the inflation rate," said Ruth Brand, President of Destatis. "Fuel and light heating oil prices in particular fell compared with May 2026. The slight decline in food prices compared with the previous month was also good news for consumers," Brand added.
Energy product prices were 3.4% higher in June than a year earlier, continuing to slow from 6.6% in May and 10.1% in April. Besides crude oil market developments, the temporary cut to the energy tax on fuels, in effect from May 1 to June 30, 2026, likely contributed to the slowdown. Fuel prices rose 11.3% year-on-year, down from 18.0% in May and 26.2% in April.
Light heating oil still climbed 29.4% year-on-year amid crude oil market pressure, easing from 47.9% in May. Despite this, household energy overall fell 1.6%, since heating oil makes up only a small share of total household energy spending. Electricity prices dropped 5.2%, natural gas including operating costs fell 2.9%, and district heating declined 0.9%. Destatis links these falling prices partly to federal energy measures in place since the start of the year.
Food prices rose just 0.4% year-on-year in June, well below headline inflation. Sugar, jam, honey and other confectionery rose 4.8%, fish and seafood 3.3%, and meat and meat products 2.4%. By contrast, edible fats and oils fell 14.7% and dairy products dropped 6.2%. Butter was 29.1% cheaper and potatoes 8.8% cheaper than a year earlier, while eggs rose 14.6%.
Inflation excluding energy stood at 2.2%, and excluding heating oil and fuel at 1.9%. Core inflation, which strips out food and energy, reached 2.5%, above the overall rate. Goods prices rose 1.7% year-on-year, with consumer goods up 2.0% and durable goods up 0.9%. Notable increases included information processing equipment, up 9.6%, tobacco products, up 5.8%, and coffee, up 5.6%. Prices fell for household appliances, down 2.2%, and entertainment electronics, down 4.0%.
Services prices rose 3.1% year-on-year in June, again outpacing headline inflation. Social institution services rose sharply, up 6.8%, followed by vehicle maintenance and repair, up 4.8%, and hairdressing and personal care services, up 4.2%. Package holidays rose 3.9%, water supply and housing-related services 3.3%, and restaurant services 2.9%. Net cold rents, a significant household expense, rose 1.9% year-on-year. Telecommunications prices were the outlier, remaining nearly flat at 0.1%.
Month-on-month, overall consumer prices fell 0.3% in June. Energy prices dropped 3.0%, driven mainly by falling fuel prices, down 5.8%, including diesel, down 7.9%, and light heating oil, down 9.5%. Food prices fell 0.5% month-on-month, with consumers benefiting from lower prices for fresh fruit, down 4.0%, and fresh vegetables, down 2.7%. Clothing also became cheaper, falling 1.7%, while package holidays rose notably, up 6.1% compared with May.
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