Berlin: Germany’s annual inflation rate increased more than expected in January, rising to 2.1% from 1.8% the previous month, according to an official preliminary estimate released on Friday.

According to Anadolu Agency, inflation rose above the market expectations of 2% in January, as reported by the Federal Statistical Office (Destatis). Energy prices continued to see a decline, falling 1.7% year-on-year, and at a faster rate than a 1.3% decline in December 2025.

Meanwhile, increases in service and food prices pushed inflation higher, by 3.2% and 2.1%, respectively. Food inflation accelerated in January from 0.8% in December 2025, the data showed.

Inflation rose 1.8% in December, 2.3% in November, and 2.4% in October and September, up from 2.2% in August and 2% in July and June, which was the lowest level since October 2024. CPI figures were 2.1% in May and April and 2.2% in March, down from a 14-month high of 2.6% in December 2024.

In January, the annual inflation rate excluding food and energy, also referred to as core inflation, rose to 2.5% from 2.4% in December on an annual basis. On a monthly basis, consumer prices increased 0.1%, despite expectations of no change.