Inflation in June 2025: further weakening of inflation in Germany

The inflation rate in Germany fell to +2.0% in June 2025. This is the lowest level since October 2024. For companies and start-ups, this development is an important signal that economic conditions are stabilizing.

Slight decline in overall inflation

According to the Federal Statistical Office, the consumer price index remained unchanged compared to the previous month (0.0%). In a year-on-year comparison, inflation has therefore fallen slightly for the third month in a row (April and May both +2.1%). Falling energy prices and a weaker price trend for food had a dampening effect on prices.

Energy prices continue to fall

Energy products were 3.5% cheaper in June 2025 than in the same month of the previous year. The decline was particularly significant for fuels (-4.6%) and household energy, such as firewood, heating oil and electricity. There was little change for natural gas (+0.1%) and district heating (-0.1%). The downward trend in energy prices thus continued, but was less pronounced than in previous months.

Easing for food

Food inflation was +2.0% in June, which corresponds to the average for overall inflation. In May, the increase was still at +2.8 %. There were price increases for fruit (+7.4 %) and confectionery (+5.3 %) in particular, while vegetables (-3.0 %) and potatoes (-11.2 %) in particular became cheaper.

Services as a price driver

Services became significantly more expensive than average, with a year-on-year increase of +3.3 %. Combined passenger transportation (+11.4 %), social services (+8.5 %) and insurance (+8.1 %) were particularly hard hit. Healthcare services and catering services also contributed to inflation. Rents rose by 2.0% compared to the previous year.

Core inflation remains higher

Core inflation (inflation excluding energy and food) stood at +2.7 % in June 2025 and thus remained above the overall figure. This key figure is often used to assess longer-term inflation trends. For start-ups, it can be an indicator for the future development of wages, costs and investment conditions.

Prices stable compared to previous month

Compared to May 2025, consumer prices remained unchanged overall. However, there were individual price fluctuations: package holidays and airline tickets became more expensive due to seasonal factors, while prices for food (-0.5%), clothing (-1.9%) and shoes (-0.8%) fell.

Outlook for founders and companies

The weaker inflation rate with stable energy prices could mean relief for start-ups and small companies, especially in terms of predictable operating costs. At the same time, the high price increases in the service sector show that selective cost burdens persist. A differentiated view of one's own sector therefore remains crucial for planning prices and investments.