Germany’s CPI slowed to 1.8% YoY in December (from 2.3% in November), marking a broad-based cooling in inflation late in the year.

• The overall index excluding food and energy eased to 2.4% YoY (Nov: 2.7%), the lowest since June 2021, indicating a moderation in underlying inflation pressures.

• Services inflation held steady at 3.5% YoY (unchanged from October and November), remaining the main contributor to headline price growth.

• Goods inflation decelerated sharply to 0.4% YoY (Nov: 1.1%), pointing to a pronounced slowdown in non-services price increases.

• Energy prices declined -1.3% YoY (Nov: -0.1%), deepening the annual contraction and exerting a stronger downward pull on headline inflation.

• Food inflation slowed to 0.8% YoY (Nov: 1.2%), continuing the easing trend seen over recent months.

• Compared with September and October, inflation momentum weakened across most major components, with the exception of services, which remained persistently elevated.