Germany's Inflation Rate Holds Steady at 2.3% in February

Despite declining energy costs, rising food prices and uneven regional trends keep inflation above the ECB's 2% target.

The inflation rate in Germany remained at 2.3% in February, unchanged from January, according to preliminary data from the Federal Statistical Office.
Energy prices fell by 1.8% compared to the previous year, while food prices surged by 2.4%, marking a significant increase from January's 0.8% rise.
Core inflation, which excludes volatile energy and food prices, decreased slightly to 2.6% from 2.9% in January, reflecting a modest slowdown in underlying price pressures.
Regional inflation rates varied, with lower rates in North Rhine-Westphalia (1.9%) and higher rates in Baden-Württemberg (2.5%) and Saxony-Anhalt (3.0%).
Economists and the Bundesbank project a gradual decline in inflation throughout 2025, with a potential return to the ECB's 2% target by 2026.