Germany’s annual inflation rate eased to 1.9% in February 2026 from 2.1% in January, confirming preliminary estimates. The slowdown was mainly driven by lower energy prices, which fell 1.9%, including declines in natural gas (-4.4%), electricity (-4.1%), district heating (-1.0%), and heating oil (-4.7%). Food price growth also moderated to 1.1% from 2.1%, as steep drops in edible fats and oils (-19.7%), potatoes (-18.1%), and dairy products (-4.9%) offset increases in confectionery (+8.1%) and meat products (+4.5%). Goods inflation also cooled to 0.8% from 1%, while services inflation remained unchanged at 3.2%. Meanwhile, core inflation, which excludes food and energy, held steady at 2.5%. On a monthly basis, the CPI increased 0.2%, following a 0.1% rise in January, supported by higher costs for energy, food, administrative fees, and package holidays. Meanwhile, the EU-harmonised CPI rose 2.0% year-on-year and 0.4% month-on-month, both matching initial estimates.
