Germany's Annual Inflation Hits 2.8 Percent in July

Germany's annual inflation rate accelerated to 2.8 percent in July, up from 2.3 percent in June. This marks the highest inflation level since April. The Federal Statistical Office of Germany reported that the increase was primarily driven by energy prices, which rose 8.3 percent compared to July 2025.

Officials attributed the surge to rising oil prices linked to the war in Iran and the discontinuation of a government fuel discount on June 30. EU harmonized inflation also reached a three-month high of 2.8 percent during the same period.

In contrast, core inflation, which excludes volatile food and energy prices, eased slightly to 2.4 percent from 2.5 percent in June. Ruth Brand, President of the Federal Statistical Office, identified energy and motor fuel prices as the primary drivers of the overall increase.