Finance

Inflation slows in several German states in December

Published by Global Banking & Finance Review

Posted on January 6, 2026

1 min read

· Last updated: January 20, 2026

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Inflation slows in several German states in December
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BERLIN, Jan 6 (Reuters) - Inflation slowed in several German states in December, official data showed on Tuesday, pointing to a lower national rate in Europe's largest economy. Official national data

Inflation Slows in German States, December Data Shows

BERLIN, Jan 6 (Reuters) - Inflation slowed in several German states in December, official data showed on Tuesday, pointing to a lower national rate in Europe's largest economy.

Official national data are due at 2 p.m. (1300 GMT).

Inflation fell below the 2% mark in North Rhine-Westphalia, Germany's most populous state, as well as Lower Saxony and Saxony.

Economists surveyed by Reuters expect national inflation to decline to 2.2% in December, down from 2.6% in November.

A eurozone-wide report is expected on Wednesday.

Inflation in the bloc has hovered around the European Central Bank's 2% target, boosted by price hikes in the services sector, and is expected to stay there for the foreseeable future.

Most analysts expect the ECB to keep its interest rate unchanged in the coming months.

(Reporting by René Wagner, writing by Thomas Seythal, editing by Miranda Murray)

Key Takeaways

  • Inflation slowed in several German states in December.
  • North Rhine-Westphalia saw inflation fall below 2%.
  • Economists predict national inflation to drop to 2.2%.
  • Eurozone inflation remains near ECB's 2% target.
  • ECB likely to keep interest rates unchanged.

Frequently Asked Questions

What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.
What is the European Central Bank?
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone.
What is the significance of the inflation rate?
The inflation rate indicates how much prices have increased over a specific period, impacting purchasing power and economic policy.
What is a national inflation rate?
The national inflation rate measures the overall increase in prices across an entire country, reflecting economic conditions.
What are economists' expectations regarding inflation?
Economists often analyze inflation trends to predict future economic conditions and guide monetary policy decisions.

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