In July 2025, inflation in Germany registered at 1.8%, lower than economists' predictions of 1.9%. The data was released by Destatis.
Overall Inflation Data
In June 2025, inflation in Germany stood at 2%, in line with the European Central Bank's target.
Regional Inflation Differences
According to preliminary figures, inflation rates varied across regions in Germany. North Rhine-Westphalia held firm at 1.8%, while Baden-Württemberg posted 2.3%. In Bavaria, inflation rose to 1.9%, whereas Lower Saxony's rate dropped to 1.9%.
Impact of US Tariffs and Economic Forecasts
Analysts are closely monitoring inflation developments amid the rollout of President Trump's tariffs. Last week, the US and EU agreed on 15% tariffs on EU imports following a round of negotiations. The levies are expected to affect prices in the US, though their impact abroad remains uncertain.
Thus, the decline of inflation in Germany to 1.8% in July 2025 reflects mixed regional trends and the ramifications of international trade agreements.
