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Germany’s annual consumer price inflation rose to a five-month high of 2.2% in August 2025 from 2% in July, confirming initial estimates. The increase was primarily driven by higher food prices (2.5% vs 2.2% in July), particularly fruit (+7.1%), sugar, jam, honey and other confectionery (+6.9%), dairy products and eggs (+3.2%) and meat products (+2.9%). At the same time, the decline in energy costs slowed (-2.4% vs -3.4%), amid decreases in prices of motor fuels (-2.5%) and household energy (-2.3%). Meanwhile, services inflation was steady at 3.1%, with price increases mainly observed in combined passenger transport services (+11.1%) and services of social facilities (+8.1%). Core inflation, which excludes food and energy, remained at 2.7% for the third month in a row. On a monthly basis, consumer prices edged up 0.1% in August, following a 0.3% rise in July.