Hardly any price increases for food and cheaper energy: the inflation rate in Germany fell below the two percent mark again in February. Consumer prices were 1.9 percent above the level of the same month last year – after 2.1 percent in January, as the Federal Statistical Office in Wiesbaden announced based on preliminary figures. From January to February 2026, according to statisticians’ calculations, consumer prices increased by a total of 0.2 percent.
Gastro tax cut does not appeal to customers Price drivers remained services, which also increased in price by an above-average 3.2 percent in February. The increase in the price of the Germany ticket for nationwide travel in regional and local transport has an impact here. In addition, customers in many restaurants and cafés do not notice that the VAT on food was reduced from 19 to 7 percent at the turn of the year. Many companies keep the tax savings.
People had to pay 1.1 percent more for food in February than a year earlier. According to data from the countries, fruit and confectionery in particular became more expensive, while butter and cooking fats became significantly cheaper. In January, food prices rose by 2.1 percent.
Energy cheaper, but fuel prices high
There was relief in energy: According to the Federal Office, prices fell by 1.9 percent in February. According to country data, electricity, gas and especially heating oil became cheaper. But drivers are at a disadvantage: the ADAC recently reported the highest fuel prices in more than a year and a half. There are concerns on the oil markets about a war between Iran and the USA, which could drive up crude oil prices.
More consumer bankruptcies
The rising prices are causing distress for many consumers. According to the information service provider Crif, there were almost 108,000 private bankruptcies last year – almost 8 percent more than in 2024. “Despite a fundamentally higher willingness to save, the reserves in many households are no longer sufficient to absorb the rising costs,” said Crif Germany managing director Frank Schlein.
Inflation expected to be around two percent
Inflation is not expected to change much in 2026. Economists expect the inflation rate for the year as a whole to be just over two percent. The minimum wage increase at the beginning of the year is likely to cause price pressure in restaurants, for example. Because many companies pass on increased costs to their customers. Inflation, however, is dampened by the strong euro, which makes imports to Germany cheaper.
If prices rise sharply, this reduces people’s purchasing power. Consumers feel inflation, especially when shopping for groceries every day. According to the Federal Information Center for Agriculture, food has become more expensive by almost a third between 2021 and 2025 – even if prices often do not rise permanently, but fluctuate, as is the case with butter. Not least because of more expensive food, many people feel that inflation is significantly higher than the official rate, which averaged 2.2 percent in 2025.
Inflation is back in the moderate range
However, the price wave that hit Germany after the Russian attack on Ukraine has come to an end. At that time, energy and food had become rapidly more expensive, causing the inflation rate to skyrocket to 6.9 percent on average in 2022 and 5.9 percent in 2023.
At a value of around two percent, inflation is now back in a moderate range. The European Central Bank, for example, is aiming for a stable price level for the euro area with 2.0 percent inflation in the medium term. In addition, thanks to rising wages, many people have more money in their pockets again: last year, incomes once again rose faster than inflation. The bottom line is that real wages rose by 1.9 percent, according to the Federal Statistical Office. The real wage level from the pre-pandemic year 2019 was almost reached again.
