The January inflation reading in Germany showed an increase in the indicator to 2.1 percent year-on-year. The Federal Statistical Office confirmed preliminary estimates, pointing to significant price pressure in the food and services sectors. Although a 1.7 percent drop in energy prices somewhat mitigated the overall rise in the cost of living, more expensive food products, such as chocolate and fruit, became a major problem for consumers at the beginning of 2026.
The January inflation rate in Germany rose to 2.1 percent, marking a noticeable acceleration compared to the 1.8 percent recorded in December. The Federal Statistical Office (Destatis) confirmed that the main factor driving the cost of living increase was sharp price hikes for food. In this category, a year-on-year increase of 2.1 percent was recorded, while just a month earlier this dynamic was only 0.8 percent. Particularly burdensome for consumers' wallets were the prices of chocolate, which rose by 21 percent, and beef, whose price increased by almost 15 percent. Additionally, service prices remained high, rising by 3.2 percent, partly due to higher public transport costs. Despite the overall upward trend, some relief came from energy prices, which fell by an average of 1.7 percent. Record declines affected the dairy market – the price of butter dropped by as much as 33 percent year-on-year, and potatoes became 10 percent cheaper. However, Destatis indicates that the monthly price increase between December and January was 0.1 percent, suggesting persistent inflationary pressure despite cheaper energy raw materials. The rise in fuel and food prices directly translated into a decrease in the real purchasing power of German households at the start of the new fiscal year. The German economy has historically been highly sensitive to price stability, rooted in the traumatic experiences of hyperinflation in the 1920s. Since the introduction of the euro in 1999, Germany has been considered a main pillar of monetary stability in the eurozone. <cytat autor=