The Consumer Price Index (CPI) of Germany rose by 0.8% in July compared to June and raised its year-on-year rate to 2.8%, five-tenths higher than the previous month and the most intense price increase in three months. This is evident from the final data released this Wednesday by the Federal Statistical Office (Destatis), which confirms the preliminary figures published at the end of July.
The evolution of prices in Germany during the seventh month of 2026 was marked by the strong increase in oil and gas prices. The energy bill recorded a year-on-year increase of 8.3%, following a rise of 3.4% in June and 6.6% in May, consolidating energy as the main driver of inflationary pressure.
"Energy prices continued to rise at a rate higher than average and, therefore, remained a key factor in inflation. The increase was significantly greater than that of the previous month, which caused the overall increase in the inflation rate," emphasized Ruth Brand, president of Destatis.
Within the energy component, fuels saw the largest escalation: their prices skyrocketed by 23% year-on-year in July, above the 11.3% of June and 18.8% of May. This surge is explained by the end, on June 30, of the discount applied by the German government on fuels. In monthly comparison (July versus June), the cost of fuels, including diesel, suddenly increased by 11.2%.
Light heating oil, included in the domestic energy section, also recorded a strong year-on-year increase in July, with a rise of 34.7%, in line with the increase in crude oil prices in international markets.
However, Destatis emphasizes that, despite this increase, the overall cost of domestic energy was 1.4% cheaper than in July of the previous year, as light heating oil represents only a small fraction of total household spending in this category.
In parallel, electricity prices fell by 5.3% year-on-year in July, while natural gas (including operating costs) became cheaper by 2.9% and urban heating decreased by 1.2% compared to the same month in 2025. According to the statistical agency, these declines are partly explained by the measures approved by the German Federal Government at the beginning of the year in response to the war in Iran.
Regarding the harmonized consumer price indicator, reference for Eurostat, the harmonized inflation stood at 2.8% in July, after rising four tenths compared to the previous month.
The price of food and core inflation
THE PRICE OF FOOD RISES BY 0.4%
On its part, food prices increased by 0.4% in July on a year-on-year basis, the same rate as in the previous two months, which shows a stable evolution in this basic component of household spending.
On the other hand, the year-on-year increase in the cost of services moderated in July to 2.9%, compared to the 3.1% recorded in June, while the rise in the price of goods accelerated to 2.5% from the 1.7% of the previous month, reflecting greater pressure in this segment.
Thus, when excluding the price of food and energy, Germany's core inflation rate stood at 2.4% year-on-year in July, one tenth lower than in June, which points to a slight containment of underlying pressures on prices.