Inflation falls to 1.9 percent, exports start the year weaker

The inflation rate in Germany weakened slightly in February 2026. According to the Federal Statistical Office (Destatis), consumer prices were 1.9% higher than in the same month last year. The authority thus confirmed its preliminary figures. In January, the inflation rate was still 2.1% and in December 2025 it was 1.8%.

Compared to the previous month of January, consumer prices rose by 0.2% in February. According to Destatis, the significantly lower rise in food prices in particular had a dampening effect on inflation. At the same time, services remain an important driver of inflation.

Energy prices again below previous year's level

Energy prices were a major dampening factor for inflation. Energy products were 1.9% lower in February than in the same month last year. They had already fallen by 1.7 percent in January.

Household energy became particularly cheaper, with prices falling by 3.5% within a year. Consumers paid less for natural gas (-4.4%), electricity (-4.1%) and district heating (-1.0%), among other things. This was partly due to political measures such as reduced transmission grid fees and the abolition of the gas storage levy at the beginning of the year.

Light heating oil (-4.7 %) also became cheaper. In contrast, solid fuels increased in price by 6.0%, while fuels rose slightly by 0.3%. According to the statistics, the escalating war in Iran and the Middle East since the end of February is not yet reflected in the February data.

Food prices rise much more slowly

The pressure on food prices has also eased. Food was 1.1 percent more expensive in February than a year earlier, having risen by 2.1 percent in January.

Despite the more moderate development, there were significant price increases in individual product groups. Confectionery rose particularly sharply (+8.1%), including chocolate (+13.7%). Meat and meat products (+4.5%) as well as fruit and fresh vegetables (+4.3% each) also became noticeably more expensive.

By contrast, there were significant price falls for edible fats and oils (-19.7%). Butter (-32.9%) and olive oil (-12.8%) in particular became cheaper. Potatoes (-18.1%) and dairy products (-4.9%) also became cheaper, while eggs (+14.5%) continued to be significantly more expensive.

Services remain the strongest price driver

While energy and food dampened inflation, services remained the most important driver of price trends. Overall, prices for services were 3.2% higher than in the previous year.

Social services (+7.0%) and combined passenger transportation (+6.2%) rose particularly sharply. The latter development is partly due to the price increase for the Deutschlandticket at the beginning of the year.

There were further significant price increases for vehicle maintenance and repair (+5.0%), health insurance services (+4.4%), restaurant services (+3.4%) and water supply and housing-related services (+3.3%). Net rents (+2.1%) also remained an important factor in overall inflation.

Core inflation - i.e. price trends excluding energy and food - stood at 2.5% in February and therefore remained above overall inflation.

Goods become moderately more expensive

Prices for goods as a whole were 0.8% higher in February than in the previous year. Consumer goods rose by 0.8% and durable consumer goods by 0.6%.

In addition to food, non-alcoholic beverages in particular (+5.3%) became significantly more expensive. Prices for coffee, tea and cocoa rose particularly sharply (+16.7%). Tobacco products (+4.7%) also rose.

By contrast, some durable goods, including large household appliances (-3.1%), became cheaper.

Weaker start to 2026 for exports

At the same time, Destatis published new figures on foreign trade. According to these figures, German exports in January 2026 fell by 2.3% compared to December, adjusted for seasonal and calendar effects, to 130.5 billion euros.

Imports also fell significantly: they were 5.9% below the previous month and amounted to 109.2 billion euros.

Despite the decline, this resulted in a foreign trade surplus of 21.2 billion euros, which was higher than the December figure of 17.4 billion euros.

USA most important export market

Most German exports in January once again went to the USA. Goods worth 13.2 billion euros were exported there - an increase of 11.7 percent compared to December.

In contrast, trade with China was significantly weaker. Exports to the People's Republic fell by 13.2 percent to 6.3 billion euros.

On the import side, China also remained the most important trading partner. Goods worth 14.2 billion euros were imported from the People's Republic, albeit 8.3% less than in the previous month.