German inflation slows more than expected in December

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Home > Finance > German inflation slows more than expected in December

Finance

German inflation slows more than expected in December

Published by Global Banking and Finance Review

Posted on January 6, 2026

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Tags:European Central Bank core inflation economic growth

By Maria Martinez

BERLIN, Jan 6 (Reuters) - German inflation slowed more than expected in December, dipping to 2.0% year on year, preliminary data from the federal statistics office showed on Tuesday.

Analysts polled by Reuters had forecast EU-harmonised inflation falling to 2.2% from last month's 2.6%.

Germany's core inflation rate, which excludes volatile food and energy prices, fell to 2.4% from 2.7% in the previous month.

The German data comes ahead of the euro zone inflation release on Wednesday.

Inflation in the bloc has hovered around the European Central Bank's 2% target, boosted by price hikes in the services sector, and is expected to stay there for the foreseeable future.

Most analysts expect the ECB to keep its interest rate unchanged in the coming months.

(Reporting by Miranda Murray and Friederike Heine; Editing by Madeline Chambers)

Frequently Asked Questions about German inflation slows more than expected in December

1What is inflation?

Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured as an annual percentage increase.

2What is core inflation?

Core inflation measures the long-term trend in prices by excluding volatile items such as food and energy. It provides a clearer view of the underlying inflation trend.

3What is the European Central Bank?

The European Central Bank (ECB) is the central bank for the eurozone, responsible for monetary policy, maintaining price stability, and overseeing the euro currency.