German inflation falls to 1.9% in February

(Sharecast News) - The inflation rate in Germany slowed more than expected in February, dipping below the 2% mark for only the second time in 17 months, as energy prices dropped and food inflation slowed. The year-on-year change in the consumer price index fell to 1.9% this month, down from 2.1% in January, according to the Federal Statistical Office, Destatis.

This was below the consensus estimate of 2.0% and just the second time since September 2024 that the annual rate of inflation has fallen below the European Central Bank's 2% target (having briefly dropped to 1.8% in December 2025).

Services inflation held steady at an annual rate of 3.2%, while goods inflation eased to 0.8% from 1.0% on the back of a big falling in food price growth to 1.1% from 2.1% the month before. Meanwhile, energy price deflation picked up to -1.9% from -1.7%.

Excluding the more volatile items like food and energy, however, core inflation held steady at an annual rate of 2.5% for the second month in a row.