Germany's annual inflation eases to 1.9% in February, below expectations

ISTANBUL

Germany's annual inflation rate eased more than expected in February, falling to 1.9% from 2.1% the previous month, according to an official preliminary estimate released on Friday.

Inflation fell below the market expectations of 2% in February, according to the Federal Statistical Office (Destatis).

Energy prices continued to see a decline, falling 1.9% year-on-year, and at a faster rate than a 1.7% decline in January.

Meanwhile, above-average increases in service and food prices pushed inflation higher, by 3.2% and 1.1%, respectively.

Food inflation was down from January's 2.1%, the data showed.

Inflation rose 2.1% in January and 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, the lowest level since Oct. 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 Dec. 2024.

In February, the annual inflation rate excluding food and energy, also referred to as core inflation, was unchanged at 2.5%.

On a monthly basis, consumer prices increased 0.2%, below expectations of a 0.5% rise.