Germany’s CPI rose +0.1% MoM and +2.2% YoY in August 2025 (vs +2.1% YoY expected), slightly above July’s +2.0% YoY pace.

• Core inflation (ex food and energy) held steady at +2.7% YoY for the third consecutive month.

• Services inflation was unchanged at +3.1% YoY, continuing its gradual slowdown from earlier in the year.

• Goods inflation edged up to +1.3% YoY (from +1.0% in July), driven partly by food and energy.

• Energy prices remained a drag at -2.4% YoY, though the decline eased compared with -3.4% in July.

• Food inflation moderated to +2.5% YoY (from +2.8% in May), providing a partial offset to energy’s disinflationary effect.