German inflation July 2025

Destatis data on Thursday showed that German inflation fell more than expected to 1.8 % in July.

The economists of Reuters expected the inflation to decrease to 1.9 %. July reads with 2 % printing recorded in JuneWhich brought the German inflation rate in line with the goal of the European Central Bank.

The numbers are coordinated across the euro area to ensure comparison. The inflation data in the euro area is scheduled later this week, with reading expectations up to 1.9 %.

The data showed that the so -called basic inflation, which comes out of food and energy costs, reached 2.7 % in July, and did not change from the previous month. Meanwhile, the printing of the inflation of services that were closely monitored from 3.3 % in June to 3.1 % in July.

In a memorandum on Thursday, Carsten Barzky, Carsten Barzky, said that Germany “is currently suffering from the inflation.” He added that it is now expected to remain the main inflation below, but near the 2 % mark.

Inflation numbers are closely monitored by economists and analysts because they establish the effect of the tariff policy worn by US President Donald Trump. Many sectoral definitions, as well as mutual duties that have been temporarily reduced are already valid in recent months.

Last week, the European Union and the United States reached an agreement that includes the European Union goods 15 % hit definitions. While it is widely expected to affect prices in the United States, it is unclear, and how inflation may be affected elsewhere.

“It remains to see how European and American companies will interact with American definitions,” Barzky said.

The inflation numbers come on Thursday after Destatis published on Wednesday a preliminary reading of the local product in the second quarter in Germany. Economy Slightly 0.1 % in this period, marking a 0.3 % decrease registered in the first quarter.