Germany’s inflation eases further in June 2026: Destasis

Germany’s inflation rate slowed again in June 2026, with confirmed consumer-price data showing a softer overall price environment for apparel and textile companies tracking German retail pricing and demand conditions, accoding to the Federal Statistical Office of Germany (Destatis).The confirmed readings also showed a month-on-month (MoM) fall in overall consumer prices, while energy continued to push inflation upward at a slower pace.

The consumer price index was 2.3 per cent higher in June 2026 than in June 2025 and 0.3 per cent lower than in May 2026. Destatis said the provisional results were confirmed; annual inflation had been 2.6 per cent in May 2026 and 2.9 per cent in April 2026, Destatis said in a press release.

Germany’s CPI inflation eased to 2.3 per cent year on year (YoY) in June 2026, with prices down 0.3 per cent from May, according to Destasis.
It said energy product prices slowed to a 3.4 per cent rise, easing some pressure on consumers.
Its data showed core inflation above headline at 2.5 per cent and services up 3.1 per cent, keeping pricing signals for sourcing teams.

The harmonised index of consumer prices was 2.4 per cent higher year on year and 0.2 per cent lower month on month.

Ruth Brand, president, Destatis said: “Energy prices continued to increase at an above-average rate as a result of the Iran war and therefore remained a key driver of inflation. However, the rise in energy product prices was less pronounced than in the previous month, which had a dampening effect on the rate of inflation.”

She added that motor fuels and heating oil were cheaper than in May 2026.

Energy product prices were 3.4 per cent higher than in June 2025, compared with increases of 6.6 per cent in May and 10.1 per cent in April. Developments on the crude oil market and the temporary reduction in the energy tax on motor fuels, which applied from May 1 to June 30, 2026, were likely factors in the smaller rise.

Motor fuels rose 11.3 per cent year on year (YoY), while heating oil was up 29.4 per cent; electricity fell 5.2 per cent, natural gas including operating costs declined 2.9 per cent and district heating was 0.9 per cent lower.

Goods prices increased 1.7 per cent, including a 2 per cent rise in non-durable consumer goods and a 0.9 per cent rise in durable consumer goods, while services prices rose 3 per cent. Core inflation, excluding food and energy, stood at 2.5 per cent, above the headline rate, keeping underlying price pressure relevant for retail and sourcing planning, added the release.

Fibre2Fashion News Desk