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Germany's annual inflation rate was confirmed at 2.6% in December 2024, marking the third consecutive month of acceleration and up from 2.2% in November. This was the highest inflation reading since January, driven by faster price increases for services (4.1% vs. 4% in November) and food (2% vs. 1.8%), while energy prices declined more modestly (-1.6% vs. -3.7%). On a monthly basis, the CPI rose by 0.5%, rebounding from a 0.2% decline in November, revising higher from preliminary estimates of a 0.4% gain. For the full year, the annual average inflation rate stood at 2.2%, down from 5.9% in 2023. Excluding food and energy, core inflation for 2024 was 3%, compared to 5.1% in the previous year. Meanwhile, the EU-harmonised inflation rate increased by 2.8% year-over-year, matching initial estimates. Monthly, harmonised consumer prices rose by 0.7%, reversing a 0.2% decline from the prior period, aligning with preliminary data.