{"id":5912,"date":"2021-02-25T14:01:17","date_gmt":"2021-02-25T13:01:17","guid":{"rendered":"https:\/\/meine-renditeimmobilie.de\/?p=5912"},"modified":"2026-07-24T15:18:55","modified_gmt":"2026-07-24T13:18:55","slug":"inflation","status":"publish","type":"post","link":"https:\/\/meine-renditeimmobilie.de\/en\/inflation\/","title":{"rendered":"Current Inflation: Inflation Rate in Germany 2026 \u2013 Development, Causes and Forecast"},"content":{"rendered":"<p style=\"font-weight: bold\">\r\n\tInflation in Germany currently stands at 2.3% (June 2026, consumer price index compared to the same month last year). Following the crisis years of 2022 and 2023 with rates of 6.9% and 5.9% respectively, price increases had stabilized in 2024 and 2025 at 2.2% each \u2013 however, the energy price shock resulting from the Middle East conflict temporarily pushed rates back up to 2.9% in early 2026.\r\n<\/p>\r\n<p style=\"font-weight: bold\">\r\n\tThe Bundesbank expects inflation to remain close to 3% for 2026 and 2027, only falling back below the 2 percent mark in 2028. In this continuously updated article, you will find current inflation figures for Germany, the US, the Eurozone, and other countries, the development over recent years, a simple explanation of how inflation occurs \u2013 and what you can do to protect your money from gradual devaluation.\r\n<\/p>\r\n\r\n<section>\r\n\t<h2>How high is inflation in Germany currently?<\/h2>\r\n\t<p>\r\n\t\tThe current inflation rate in Germany is 2.3% (June 2026). It is measured as the change in the Consumer Price Index (CPI) compared to the same month of the previous year. Core inflation \u2013 meaning inflation excluding volatile prices for energy and food \u2013 was slightly higher in June 2026 at 2.5%. The official figures are published by the <a href=\"https:\/\/www.destatis.de\/DE\/Themen\/Wirtschaft\/Preise\/Verbraucherpreisindex\/_inhalt.html\" rel=\"nofollow\" target=\"_blank\">Federal Statistical Office (Destatis)<\/a> at the end of each month as a flash estimate and about two weeks later as a final result.\r\n\t<\/p>\r\n\t<p>\r\n\t\tThe first half of 2026 was shaped by an energy price shock: as a result of the war involving Iran and tensions in the Persian Gulf, oil and fuel prices rose significantly. In April 2026, energy prices were 10.1% above the previous year&#8217;s level, and overall inflation rose to 2.9%. Since the ceasefire, the situation has been easing again \u2013 energy inflation slowed to 3.4% in June, and the inflation rate fell for the second consecutive month.\r\n\t<\/p>\r\n\t<div class=\"mri-table-overflow\">\r\n\t\t<table>\r\n\t\t\t<thead>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tMonth\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tInflation Rate (CPI)\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tCore Inflation\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tEnergy Prices vs. Previous Year\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/thead>\r\n\t\t\t<tbody>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>March 2026<\/td>\r\n\t\t\t\t\t<td>2.7 %<\/td>\r\n\t\t\t\t\t<td>approx. 2.5 %<\/td>\r\n\t\t\t\t\t<td>sharply rising<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>April 2026<\/td>\r\n\t\t\t\t\t<td>2.9 %<\/td>\r\n\t\t\t\t\t<td>approx. 2.5 %<\/td>\r\n\t\t\t\t\t<td>+10.1 %<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>May 2026<\/td>\r\n\t\t\t\t\t<td>2.6 %<\/td>\r\n\t\t\t\t\t<td>2.6 %<\/td>\r\n\t\t\t\t\t<td>+6.6 %<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>June 2026<\/td>\r\n\t\t\t\t\t<td>2.3 %<\/td>\r\n\t\t\t\t\t<td>2.5 %<\/td>\r\n\t\t\t\t\t<td>+3.4 %<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/tbody>\r\n\t\t<\/table>\r\n\t<\/div>\r\n\t<p>\r\n\t\tFor context: The European Central Bank (ECB) aims for medium-term inflation of 2% in the euro area \u2013 this figure is considered <a href=\"https:\/\/www.ecb.europa.eu\/mopo\/strategy\/pricestab\/html\/index.de.html\" rel=\"nofollow\" target=\"_blank\">price stability<\/a>. Germany is currently only slightly above this target. Due to ongoing energy risks, the ECB nevertheless raised key interest rates by 0.25 percentage points in June 2026. Read more about the relationship between inflation and interest rates below.\r\n\t<\/p>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>Inflation in Germany: Development of the Last 10 Years<\/h2>\r\n\t<p>\r\n\t\tA look at inflation in Germany over the last 10 years shows two completely different phases: until 2020, inflation was mostly well below 2% \u2013 at times there was even talk of deflation risk. From 2021 onwards, the strongest price surge since German reunification followed, triggered by the aftermath of the COVID-19 pandemic (disrupted supply chains, pent-up demand) and massively exacerbated by the Russian attack on Ukraine and the resulting surge in energy prices.\r\n\t<\/p>\r\n\t<div class=\"mri-table-overflow\">\r\n\t\t<table>\r\n\t\t\t<thead>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tYear\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tInflation Rate (Annual Average)\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tNote\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/thead>\r\n\t\t\t<tbody>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2015<\/td>\r\n\t\t\t\t\t<td>0.5 %<\/td>\r\n\t\t\t\t\t<td>Drop in oil prices suppresses inflation<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2016<\/td>\r\n\t\t\t\t\t<td>0.5 %<\/td>\r\n\t\t\t\t\t<td>Continued very low inflation<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2017<\/td>\r\n\t\t\t\t\t<td>1.5 %<\/td>\r\n\t\t\t\t\t<td>Normalization<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2018<\/td>\r\n\t\t\t\t\t<td>1.8 %<\/td>\r\n\t\t\t\t\t<td>Close to ECB target<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2019<\/td>\r\n\t\t\t\t\t<td>1.4 %<\/td>\r\n\t\t\t\t\t<td>&nbsp;<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2020<\/td>\r\n\t\t\t\t\t<td>0.5 %<\/td>\r\n\t\t\t\t\t<td>COVID year, temporary VAT reduction<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2021<\/td>\r\n\t\t\t\t\t<td>3.1 %<\/td>\r\n\t\t\t\t\t<td>Supply chain bottlenecks, catch-up effects<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2022<\/td>\r\n\t\t\t\t\t<td>6.9 %<\/td>\r\n\t\t\t\t\t<td>Energy crisis following Ukraine war, peak level<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2023<\/td>\r\n\t\t\t\t\t<td>5.9 %<\/td>\r\n\t\t\t\t\t<td>Slow easing, core inflation 5.1%<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2024<\/td>\r\n\t\t\t\t\t<td>2.2 %<\/td>\r\n\t\t\t\t\t<td>Significant easing<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2025<\/td>\r\n\t\t\t\t\t<td>2.2 %<\/td>\r\n\t\t\t\t\t<td>Stabilization, December at just 1.8%<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2026<\/td>\r\n\t\t\t\t\t<td>approx. 2.9 % (Forecast)<\/td>\r\n\t\t\t\t\t<td>Energy price shock due to Middle East conflict<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/tbody>\r\n\t\t<\/table>\r\n\t<\/div>\r\n\t<figure>\r\n\t\t<svg viewBox=\"0 0 800 420\" width=\"100%\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Line chart: Inflation rate in Germany 2015 to 2026\">\r\n\t\t\t<rect x=\"0\" y=\"0\" width=\"800\" height=\"420\" fill=\"#ffffff\"\/>\r\n\t\t\t<text x=\"400\" y=\"26\" text-anchor=\"middle\" font-family=\"sans-serif\" font-size=\"17\" font-weight=\"bold\" fill=\"#1f2d3d\">Inflation Rate Germany 2015\u20132026 (Annual Average, CPI)<\/text>\r\n\t\t\t<!-- Grid lines and y-axis -->\r\n\t\t\t<g font-family=\"sans-serif\" font-size=\"12\" fill=\"#7a8894\">\r\n\t\t\t\t<line x1=\"60\" y1=\"340\" x2=\"760\" y2=\"340\" stroke=\"#c9d2da\" stroke-width=\"1\"\/>\r\n\t\t\t\t<line x1=\"60\" y1=\"265\" x2=\"760\" y2=\"265\" stroke=\"#e4e9ee\" stroke-width=\"1\"\/>\r\n\t\t\t\t<line x1=\"60\" y1=\"190\" x2=\"760\" y2=\"190\" stroke=\"#e4e9ee\" stroke-width=\"1\"\/>\r\n\t\t\t\t<line x1=\"60\" y1=\"115\" x2=\"760\" y2=\"115\" stroke=\"#e4e9ee\" stroke-width=\"1\"\/>\r\n\t\t\t\t<line x1=\"60\" y1=\"40\" x2=\"760\" y2=\"40\" stroke=\"#e4e9ee\" stroke-width=\"1\"\/>\r\n\t\t\t\t<text x=\"52\" y=\"344\" text-anchor=\"end\">0 %<\/text>\r\n\t\t\t\t<text x=\"52\" y=\"269\" text-anchor=\"end\">2 %<\/text>\r\n\t\t\t\t<text x=\"52\" y=\"194\" text-anchor=\"end\">4 %<\/text>\r\n\t\t\t\t<text x=\"52\" y=\"119\" text-anchor=\"end\">6 %<\/text>\r\n\t\t\t\t<text x=\"52\" y=\"44\" text-anchor=\"end\">8 %<\/text>\r\n\t\t\t<\/g>\r\n\t\t\t<!-- ECB target 2% -->\r\n\t\t\t<line x1=\"60\" y1=\"265\" x2=\"760\" y2=\"265\" stroke=\"#3b8c6e\" stroke-width=\"1.5\" stroke-dasharray=\"6 5\"\/>\r\n\t\t\t<text x=\"755\" y=\"258\" text-anchor=\"end\" font-family=\"sans-serif\" font-size=\"12\" fill=\"#3b8c6e\">ECB Target 2%<\/text>\r\n\t\t\t<!-- Data line -->\r\n\t\t\t<polyline points=\"60,321 124,321 187,284 251,273 315,288 378,321 442,224 506,81 569,119 633,258 697,258\" fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"3\" stroke-linejoin=\"round\" stroke-linecap=\"round\"\/>\r\n\t\t\t<line x1=\"697\" y1=\"258\" x2=\"760\" y2=\"231\" stroke=\"#1f4e79\" stroke-width=\"3\" stroke-dasharray=\"7 6\" stroke-linecap=\"round\"\/>\r\n\t\t\t<!-- Points -->\r\n\t\t\t<g fill=\"#1f4e79\">\r\n\t\t\t\t<circle cx=\"60\" cy=\"321\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"124\" cy=\"321\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"187\" cy=\"284\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"251\" cy=\"273\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"315\" cy=\"288\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"378\" cy=\"321\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"442\" cy=\"224\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"506\" cy=\"81\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"569\" cy=\"119\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"633\" cy=\"258\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"697\" cy=\"258\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"760\" cy=\"231\" r=\"4\" fill=\"#ffffff\" stroke=\"#1f4e79\" stroke-width=\"2.5\"\/>\r\n\t\t\t<\/g>\r\n\t\t\t<!-- Labels of selected points -->\r\n\t\t\t<g font-family=\"sans-serif\" font-size=\"12\" fill=\"#1f2d3d\">\r\n\t\t\t\t<text x=\"506\" y=\"66\" text-anchor=\"middle\" font-weight=\"bold\">6.9 %<\/text>\r\n\t\t\t\t<text x=\"569\" y=\"104\" text-anchor=\"middle\">5.9 %<\/text>\r\n\t\t\t\t<text x=\"633\" y=\"245\" text-anchor=\"middle\">2.2 %<\/text>\r\n\t\t\t\t<text x=\"760\" y=\"216\" text-anchor=\"end\">2.9 % (Forecast)<\/text>\r\n\t\t\t<\/g>\r\n\t\t\t<!-- x-axis -->\r\n\t\t\t<g font-family=\"sans-serif\" font-size=\"12\" fill=\"#7a8894\" text-anchor=\"middle\">\r\n\t\t\t\t<text x=\"60\" y=\"362\">2015<\/text>\r\n\t\t\t\t<text x=\"187\" y=\"362\">2017<\/text>\r\n\t\t\t\t<text x=\"315\" y=\"362\">2019<\/text>\r\n\t\t\t\t<text x=\"442\" y=\"362\">2021<\/text>\r\n\t\t\t\t<text x=\"569\" y=\"362\">2023<\/text>\r\n\t\t\t\t<text x=\"697\" y=\"362\">2025<\/text>\r\n\t\t\t\t<text x=\"760\" y=\"362\">2026<\/text>\r\n\t\t\t<\/g>\r\n\t\t\t<text x=\"400\" y=\"400\" text-anchor=\"middle\" font-family=\"sans-serif\" font-size=\"11\" fill=\"#7a8894\">Source: Federal Statistical Office; 2026: Forecast by Deutsche Bundesbank (HICP, June 2026)<\/text>\r\n\t\t<\/svg>\r\n\t\t<figcaption>\r\n\t\t\tInflation in Germany since 2015: long years below 2%, the jump to 6.9% in 2022, and subsequent normalization.\r\n\t\t<\/figcaption>\r\n\t<\/figure>\r\n\r\n\t<h3>Average Inflation Over the Last 10 and 20 Years<\/h3>\r\n\t<p>\r\n\t\tAverage inflation in Germany over the last 10 years (2016 to 2025) stood at around 2.6% per year \u2013 significantly impacted by the outliers in 2022 and 2023. Looking at the last 20 years, the average comes out to around 2% per year.\r\n\t<\/p>\r\n\t<p>\r\n\t\tThat sounds harmless, but it adds up: adding together just the annual rates since 2020, consumer prices have risen by more than 20%. In other words: what cost 100 euros in 2020 costs over 120 euros today.\r\n\t<\/p>\r\n\r\n\t<h3>Review: The 2022\/2023 Inflation Wave<\/h3>\r\n\t<p>\r\n\t\tThe peak of the recent inflation wave was reached in autumn 2022, when monthly rates temporarily climbed above 8% (under the calculation basis at the time, even over 10%) \u2013 the highest levels in decades. The main drivers were natural gas, electricity, heating oil, and fuels, followed by food inflation, which temporarily exceeded 20% in 2023.\r\n\t<\/p>\r\n\t<p>\r\n\t\tOnly falling energy prices, ECB interest rate hikes, and weakening demand brought inflation back close to the 2 percent target from 2024 onwards. To understand the consequences such a phase can have on the economy, read our article on <a href=\"https:\/\/meine-renditeimmobilie.de\/en\/recession\/\">recession<\/a>.\r\n\t<\/p>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>What is Inflation? Definition Simply Explained<\/h2>\r\n\t<h3>Definition: What Does Inflation Mean?<\/h3>\r\n\t<p>\r\n\t\tInflation means that the general price level rises over an extended period \u2013 goods and services become broadly more expensive. The flip side: with the same amount of money, you can buy less and less.\r\n\t<\/p>\r\n\t<p>\r\n\t\tInflation is therefore synonymous with currency devaluation or a loss of purchasing power. The term originates from the Latin &#8220;inflare&#8221; (to blow up or inflate) \u2013 referring to the expansion of the money supply relative to the available quantity of goods.\r\n\t<\/p>\r\n\t<figure>\r\n\t\t<svg viewBox=\"0 0 800 300\" width=\"100%\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Line diagram: More money meets the same quantity of goods, prices rise\">\r\n\t\t\t<rect x=\"0\" y=\"0\" width=\"800\" height=\"300\" fill=\"#ffffff\"\/>\r\n\t\t\t<!-- Money supply -->\r\n\t\t\t<rect x=\"50\" y=\"60\" width=\"200\" height=\"150\" fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"2.5\" rx=\"6\"\/>\r\n\t\t\t<g fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"2\">\r\n\t\t\t\t<circle cx=\"95\" cy=\"105\" r=\"16\"\/>\r\n\t\t\t\t<circle cx=\"150\" cy=\"105\" r=\"16\"\/>\r\n\t\t\t\t<circle cx=\"205\" cy=\"105\" r=\"16\"\/>\r\n\t\t\t\t<circle cx=\"95\" cy=\"160\" r=\"16\"\/>\r\n\t\t\t\t<circle cx=\"150\" cy=\"160\" r=\"16\"\/>\r\n\t\t\t\t<circle cx=\"205\" cy=\"160\" r=\"16\"\/>\r\n\t\t\t<\/g>\r\n\t\t\t<g font-family=\"sans-serif\" font-size=\"14\" fill=\"#1f4e79\" text-anchor=\"middle\">\r\n\t\t\t\t<text x=\"95\" y=\"110\">\u20ac<\/text>\r\n\t\t\t\t<text x=\"150\" y=\"110\">\u20ac<\/text>\r\n\t\t\t\t<text x=\"205\" y=\"110\">\u20ac<\/text>\r\n\t\t\t\t<text x=\"95\" y=\"165\">\u20ac<\/text>\r\n\t\t\t\t<text x=\"150\" y=\"165\">\u20ac<\/text>\r\n\t\t\t\t<text x=\"205\" y=\"165\">\u20ac<\/text>\r\n\t\t\t<\/g>\r\n\t\t\t<text x=\"150\" y=\"240\" text-anchor=\"middle\" font-family=\"sans-serif\" font-size=\"15\" font-weight=\"bold\" fill=\"#1f2d3d\">Money supply increases<\/text>\r\n\t\t\t<path d=\"M 150 44 L 150 20 M 142 30 L 150 20 L 158 30\" fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"2.5\"\/>\r\n\t\t\t<!-- Quantity of goods -->\r\n\t\t\t<rect x=\"320\" y=\"60\" width=\"200\" height=\"150\" fill=\"none\" stroke=\"#5f6f7d\" stroke-width=\"2.5\" rx=\"6\"\/>\r\n\t\t\t<g fill=\"none\" stroke=\"#5f6f7d\" stroke-width=\"2\">\r\n\t\t\t\t<rect x=\"355\" y=\"95\" width=\"40\" height=\"40\"\/>\r\n\t\t\t\t<rect x=\"425\" y=\"95\" width=\"40\" height=\"40\"\/>\r\n\t\t\t\t<rect x=\"390\" y=\"145\" width=\"40\" height=\"40\"\/>\r\n\t\t\t<\/g>\r\n\t\t\t<text x=\"420\" y=\"240\" text-anchor=\"middle\" font-family=\"sans-serif\" font-size=\"15\" font-weight=\"bold\" fill=\"#1f2d3d\">Quantity of goods stays same<\/text>\r\n\t\t\t<!-- Arrow to result -->\r\n\t\t\t<path d=\"M 545 135 L 600 135 M 590 127 L 600 135 L 590 143\" fill=\"none\" stroke=\"#1f2d3d\" stroke-width=\"2.5\"\/>\r\n\t\t\t<!-- Result -->\r\n\t\t\t<rect x=\"615\" y=\"80\" width=\"150\" height=\"110\" fill=\"none\" stroke=\"#a63d40\" stroke-width=\"2.5\" rx=\"6\"\/>\r\n\t\t\t<text x=\"690\" y=\"125\" text-anchor=\"middle\" font-family=\"sans-serif\" font-size=\"15\" font-weight=\"bold\" fill=\"#a63d40\">Prices<\/text>\r\n\t\t\t<text x=\"690\" y=\"147\" text-anchor=\"middle\" font-family=\"sans-serif\" font-size=\"15\" font-weight=\"bold\" fill=\"#a63d40\">rise<\/text>\r\n\t\t\t<path d=\"M 690 74 L 690 40 M 681 52 L 690 40 L 699 52\" fill=\"none\" stroke=\"#a63d40\" stroke-width=\"3\"\/>\r\n\t\t<\/svg>\r\n\t\t<figcaption>\r\n\t\t\tSimplified basic principle of inflation: If the money supply grows faster than the volume of available goods, prices rise.\r\n\t\t<\/figcaption>\r\n\t<\/figure>\r\n\r\n\t<h3>How is Inflation Measured? The Basket of Goods<\/h3>\r\n\t<p>\r\n\t\tInflation is measured using the Consumer Price Index. For this purpose, the Federal Statistical Office uses a representative basket of goods containing around 700 types of items \u2013 from food, rent, and energy to haircut appointments and insurance policies.\r\n\t<\/p>\r\n\t<p>\r\n\t\tEvery month, the prices of these goods are collected and weighted: items households spend a lot on (such as housing) carry more weight than rare purchases. The percentage change in the index compared to the same month of the previous year is the inflation rate.\r\n\t<\/p>\r\n\t<p>\r\n\t\tFor European comparisons, there is also the Harmonised Index of Consumer Prices (HICP), reported by the <a href=\"https:\/\/www.bundesbank.de\/de\/statistiken\/konjunktur-und-preise\/harmonisierter-verbraucherpreisindex\/harmonisierter-verbraucherpreisindex-927952\" rel=\"nofollow\" target=\"_blank\">Deutsche Bundesbank<\/a> and Eurostat \u2013 the figures differ slightly from the national CPI due to methodological differences.\r\n\t<\/p>\r\n\t<p>\r\n\t\tThe fact that perceived inflation often feels higher than the official figure has a simple reason: prices of things you buy frequently \u2013 food, gas, coffee on the go \u2013 are perceived much more consciously than stable prices for electronics or clothing.\r\n\t<\/p>\r\n\t<p>\r\n\t\tAnyone wishing to calculate their personal inflation rate can use the personal inflation calculator on the Federal Statistical Office&#8217;s website and enter their own expenditure shares there.\r\n\t<\/p>\r\n\r\n\t<h3>The Opposite of Inflation: Deflation<\/h3>\r\n\t<p>\r\n\t\tThe opposite of inflation is deflation \u2013 a sustained decrease in the price level. While this initially sounds pleasant, economists consider it more dangerous than moderate inflation: if everything is cheaper tomorrow than today, consumers and businesses postpone purchases and investments. Demand collapses, companies cut prices and wages, and the economy enters a downward spiral. Japan struggled with this phenomenon for decades.\r\n\t<\/p>\r\n\t<p>\r\n\t\tTwo other terms that often come up in connection with inflation and deflation:\r\n\t<\/p>\r\n\t<ul>\r\n\t\t<li>\r\n\t\t\t<strong>Disinflation:<\/strong> Prices continue to rise, but at a slower pace \u2013 so the inflation rate decreases. This is precisely what was observed in Germany from 2023 to 2025 (falling from 5.9% to 2.2%).\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\t<strong>Stagflation:<\/strong> High inflation coincides with a stagnant or shrinking economy \u2013 a particularly uncomfortable combination that occurred, for example, in the 1970s following the oil crises.\r\n\t\t<\/li>\r\n\t<\/ul>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>How Does Inflation Occur? Causes and Types<\/h2>\r\n\t<p>\r\n\t\tWhy does inflation happen in the first place? In practice, several causes usually interact. Economists primarily distinguish between the following mechanisms:\r\n\t<\/p>\r\n\t<h3>Demand-pull Inflation and Cost-push Inflation<\/h3>\r\n\t<ul>\r\n\t\t<li>\r\n\t\t\t<strong>Demand-pull inflation:<\/strong> Demand exceeds supply \u2013 for instance, when households wanted to spend pent-up money after the COVID-19 pandemic, but production could not keep up yet. Suppliers can enforce higher prices.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\t<strong>Cost-push \/ Supply-side inflation:<\/strong> Rising production costs (energy, raw materials, wages, transport) are passed on by companies to customers. The 2022 energy crisis is a textbook example.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\t<strong>Monetary inflation:<\/strong> If the money supply grows significantly faster than economic output, money loses its value. The expansionary monetary policy of central banks following the financial and COVID crises is considered a factor in the recent wave of inflation.\r\n\t\t<\/li>\r\n\t<\/ul>\r\n\t<h3>Imported Inflation<\/h3>\r\n\t<p>\r\n\t\tImported inflation occurs when price increases are &#8220;imported&#8221; into the domestic economy from abroad. Germany imports a large portion of its energy: if oil prices rise on global markets \u2013 as happened most recently in 2026 due to the conflict involving Iran \u2013 fuel, heating oil, and consequently transport costs and many products become more expensive domestically. A weak euro also drives inflation because imports priced in dollars become more expensive.\r\n\t<\/p>\r\n\t<h3>The Wage-Price Spiral<\/h3>\r\n\t<p>\r\n\t\tThe so-called wage-price spiral is widely feared: rising prices lead to higher wage demands, higher wages increase company costs, companies in turn raise prices \u2013 and the cycle starts all over again. Central banks attempt to prevent precisely this entrenchment of inflation through timely rate hikes.\r\n\t<\/p>\r\n\t<figure>\r\n\t\t<svg viewBox=\"0 0 800 340\" width=\"100%\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Line diagram: Cycle of the wage-price spiral\">\r\n\t\t\t<rect x=\"0\" y=\"0\" width=\"800\" height=\"340\" fill=\"#ffffff\"\/>\r\n\t\t\t<text x=\"400\" y=\"178\" text-anchor=\"middle\" font-family=\"sans-serif\" font-size=\"16\" font-weight=\"bold\" fill=\"#7a8894\">Wage-Price Spiral<\/text>\r\n\t\t\t<!-- Boxes -->\r\n\t\t\t<g font-family=\"sans-serif\" font-size=\"14\" fill=\"#1f2d3d\">\r\n\t\t\t\t<rect x=\"310\" y=\"30\" width=\"180\" height=\"50\" fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"2.5\" rx=\"8\"\/>\r\n\t\t\t\t<text x=\"400\" y=\"60\" text-anchor=\"middle\">Prices rise<\/text>\r\n\t\t\t\t<rect x=\"580\" y=\"145\" width=\"190\" height=\"50\" fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"2.5\" rx=\"8\"\/>\r\n\t\t\t\t<text x=\"675\" y=\"168\" text-anchor=\"middle\">Employees demand<\/text>\r\n\t\t\t\t<text x=\"675\" y=\"186\" text-anchor=\"middle\">higher wages<\/text>\r\n\t\t\t\t<rect x=\"310\" y=\"260\" width=\"180\" height=\"50\" fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"2.5\" rx=\"8\"\/>\r\n\t\t\t\t<text x=\"400\" y=\"283\" text-anchor=\"middle\">Company costs<\/text>\r\n\t\t\t\t<text x=\"400\" y=\"301\" text-anchor=\"middle\">increase<\/text>\r\n\t\t\t\t<rect x=\"30\" y=\"145\" width=\"190\" height=\"50\" fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"2.5\" rx=\"8\"\/>\r\n\t\t\t\t<text x=\"125\" y=\"168\" text-anchor=\"middle\">Companies raise<\/text>\r\n\t\t\t\t<text x=\"125\" y=\"186\" text-anchor=\"middle\">prices further<\/text>\r\n\t\t\t<\/g>\r\n\t\t\t<!-- Clockwise arrows -->\r\n\t\t\t<g fill=\"none\" stroke=\"#a63d40\" stroke-width=\"2.5\">\r\n\t\t\t\t<path d=\"M 500 65 Q 610 85 655 138\"\/>\r\n\t\t\t\t<path d=\"M 648 130 L 655 138 L 644 141\" stroke-linejoin=\"round\"\/>\r\n\t\t\t\t<path d=\"M 655 202 Q 610 255 500 280\"\/>\r\n\t\t\t\t<path d=\"M 508 272 L 500 280 L 511 283\" stroke-linejoin=\"round\"\/>\r\n\t\t\t\t<path d=\"M 300 280 Q 190 255 145 202\"\/>\r\n\t\t\t\t<path d=\"M 145 213 L 145 202 L 156 202\" stroke-linejoin=\"round\"\/>\r\n\t\t\t\t<path d=\"M 145 138 Q 190 85 300 62\"\/>\r\n\t\t\t\t<path d=\"M 292 58 L 300 62 L 293 70\" stroke-linejoin=\"round\"\/>\r\n\t\t\t<\/g>\r\n\t\t<\/svg>\r\n\t\t<figcaption>\r\n\t\t\tThe wage-price spiral: Prices and wages drive each other upward \u2013 inflation becomes entrenched.\r\n\t\t<\/figcaption>\r\n\t<\/figure>\r\n\t<h3>Types of Inflation: From Creeping to Galloping<\/h3>\r\n\t<p>\r\n\t\tDepending on the speed of currency devaluation, different types of inflation are distinguished:\r\n\t<\/p>\r\n\t<ul>\r\n\t\t<li>\r\n\t\t\t<strong>Creeping inflation<\/strong> (up to approx. 5% per year): the norm in developed economies, even desirable at around 2%.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\t<strong>Trotting inflation<\/strong> (approx. 5% to 20%): confidence in the currency begins to suffer, savers lose noticeable purchasing power.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\t<strong>Galloping inflation<\/strong> (above 20%): money devaluation becomes the dominant economic issue \u2013 currently observable, for instance, in Turkey and Argentina.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\t<strong>Hyperinflation<\/strong> (over 50% per month): the monetary system effectively collapses.\r\n\t\t<\/li>\r\n\t<\/ul>\r\n\t<h3>The Hyperinflation of 1923<\/h3>\r\n\t<p>\r\n\t\tThe most famous German example is the hyperinflation of 1923: to finance war debts and reparations, the Reich government ran the printing presses. By November 1923, one US dollar ultimately cost 4.2 trillion Marks, and a loaf of bread cost several hundred billion. Images of people carrying money in wheelbarrows to the bakery, and inflation banknotes with face values in the billions, remain a symbol of total currency collapse to this day.\r\n\t<\/p>\r\n\t<p>\r\n\t\tHyperinflation was only ended by monetary reform with the introduction of the Rentenmark. This experience continues to shape Germany&#8217;s stability culture \u2013 and the policies of the Bundesbank and later the ECB \u2013 to this day.\r\n\t<\/p>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>Calculating Inflation: Formula, Calculator, and Example Calculation<\/h2>\r\n\t<p>\r\n\t\tYou can calculate the inflation rate from the change in the Consumer Price Index:\r\n\t<\/p>\r\n\t<blockquote>\r\n\t\t<p>\r\n\t\t\tInflation Rate = (Current CPI \u2212 Previous Year CPI) \u00f7 Previous Year CPI \u00d7 100\r\n\t\t<\/p>\r\n\t<\/blockquote>\r\n\t<p>\r\n\t\tExample: If the index stands at 121.0 points and was at 118.3 points a year earlier, the result is (121.0 \u2212 118.3) \u00f7 118.3 \u00d7 100 \u2248 2.3% inflation. More exciting for your financial planning is the reverse calculation: What does inflation do to your savings long-term? The formula serves as a purchasing power inflation calculator: Purchasing Power = Amount \u00f7 (1 + Inflation Rate)<sup>Years<\/sup>.\r\n\t<\/p>\r\n\t<div class=\"mri-table-overflow\">\r\n\t\t<table>\r\n\t\t\t<thead>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tPurchasing Power of \u20ac10,000\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tat 2% Inflation\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tat 3% Inflation\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tat 5% Inflation\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/thead>\r\n\t\t\t<tbody>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>after 5 years<\/td>\r\n\t\t\t\t\t<td>\u20ac9,057<\/td>\r\n\t\t\t\t\t<td>\u20ac8,626<\/td>\r\n\t\t\t\t\t<td>\u20ac7,835<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>after 10 years<\/td>\r\n\t\t\t\t\t<td>\u20ac8,203<\/td>\r\n\t\t\t\t\t<td>\u20ac7,441<\/td>\r\n\t\t\t\t\t<td>\u20ac6,139<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>after 20 years<\/td>\r\n\t\t\t\t\t<td>\u20ac6,730<\/td>\r\n\t\t\t\t\t<td>\u20ac5,537<\/td>\r\n\t\t\t\t\t<td>\u20ac3,769<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>after 30 years<\/td>\r\n\t\t\t\t\t<td>\u20ac5,521<\/td>\r\n\t\t\t\t\t<td>\u20ac4,120<\/td>\r\n\t\t\t\t\t<td>\u20ac2,314<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/tbody>\r\n\t\t<\/table>\r\n\t<\/div>\r\n\t<p>\r\n\t\tIn other words: even at a &#8220;healthy&#8221; 2% inflation per year, uninvested savings lose almost half of their purchasing power over 30 years. At 5% \u2013 as seen on average in 2022\/2023 \u2013 less than a quarter remains after 30 years. This is precisely why the question of the right inflation protection is so vital for savers and investors (more on this below).\r\n\t<\/p>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>Inflation in International Comparison: USA, Eurozone, Turkey &amp; Co.<\/h2>\r\n\t<p>\r\n\t\tInflation is a global phenomenon, but differences between countries are enormous. The following table shows the latest available inflation rates of key major economies:\r\n\t<\/p>\r\n\t<div class=\"mri-table-overflow\">\r\n\t\t<table>\r\n\t\t\t<thead>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tCountry \/ Region\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tInflation Rate\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tAs of\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/thead>\r\n\t\t\t<tbody>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>Germany<\/td>\r\n\t\t\t\t\t<td>2.3 %<\/td>\r\n\t\t\t\t\t<td>June 2026<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>Eurozone<\/td>\r\n\t\t\t\t\t<td>2.8 %<\/td>\r\n\t\t\t\t\t<td>June 2026<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>EU Total<\/td>\r\n\t\t\t\t\t<td>2.9 %<\/td>\r\n\t\t\t\t\t<td>June 2026<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>USA<\/td>\r\n\t\t\t\t\t<td>3.5 %<\/td>\r\n\t\t\t\t\t<td>June 2026<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>China<\/td>\r\n\t\t\t\t\t<td>0.8 %<\/td>\r\n\t\t\t\t\t<td>December 2025<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>Turkey<\/td>\r\n\t\t\t\t\t<td>approx. 31 %<\/td>\r\n\t\t\t\t\t<td>March 2026<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>Argentina<\/td>\r\n\t\t\t\t\t<td>31.6 %<\/td>\r\n\t\t\t\t\t<td>December 2025<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/tbody>\r\n\t\t<\/table>\r\n\t<\/div>\r\n\t<p>\r\n\t\tCurrent comparative data is published by, among others, <a href=\"https:\/\/www.destatis.de\/DE\/Themen\/Laender-Regionen\/Internationales\/Thema\/wirtschaft-finanzen\/Preisentwicklung.html\" rel=\"nofollow\" target=\"_blank\">Destatis (international price trends)<\/a> and <a href=\"https:\/\/ec.europa.eu\/eurostat\/web\/products-euro-indicators\/w\/2-17072026-ap\" rel=\"nofollow\" target=\"_blank\">Eurostat<\/a>.\r\n\t<\/p>\r\n\t<h3>Inflation in the USA<\/h3>\r\n\t<p>\r\n\t\tInflation in the USA stood at 3.5% in June 2026 \u2013 after 4.2% in May, the first decline since January. Here too, energy was the main driver: following the ceasefire between the US and Iran, gasoline prices fell significantly, with the Consumer Price Index dropping 0.4% in June compared to the previous month \u2013 the sharpest monthly decline since 2020. The core rate stands at 2.6%.\r\n\t<\/p>\r\n\t<p>\r\n\t\tThe US Federal Reserve currently maintains its key interest rate in the range of 3.50% to 3.75%. Official US data can be found at the <a href=\"https:\/\/www.bls.gov\/cpi\/\" rel=\"nofollow\" target=\"_blank\">Bureau of Labor Statistics<\/a>. Comparing the USA vs. Germany, US inflation reacted significantly more strongly to the oil price shock in 2026, but had also generally stayed slightly above German levels in prior years.\r\n\t<\/p>\r\n\t<h3>Inflation in the Eurozone and Europe<\/h3>\r\n\t<p>\r\n\t\tIn the Eurozone, inflation fell to 2.8% in June 2026 (May: 3.2%). Across Europe, the spread is wide: while Sweden and the Czech Republic were recently around 1%, Romania recorded over 9%. Switzerland traditionally features Europe&#8217;s lowest inflation rates \u2013 partly thanks to the strong franc \u2013, whereas Austria has mostly remained above German levels in recent years.\r\n\t<\/p>\r\n\t<h3>Inflation in Turkey<\/h3>\r\n\t<p>\r\n\t\tInflation in Turkey represents an extreme case among major economies: in October 2022, it peaked at over 85% after the central bank, under political pressure, lowered interest rates despite rising prices and the Lira depreciated massively.\r\n\t<\/p>\r\n\t<p>\r\n\t\tSince returning to orthodox monetary policy with high key rates, the rate is gradually falling \u2013 most recently to around 31% (March 2026), with an average just under 30% expected for full-year 2026. For the population, this continues to mean dramatic losses in purchasing power, especially as rent and food prices at times rose significantly faster than average.\r\n\t<\/p>\r\n\t<h3>Other Countries: Argentina, Russia, Japan<\/h3>\r\n\t<p>\r\n\t\tArgentina has struggled with high inflation for decades; after triple-digit rates in 2023\/2024, inflation recently fell to around 30% \u2013 still high, but on a clear downward trend.\r\n\t<\/p>\r\n\t<p>\r\n\t\tIn Russia, war economy dynamics, sanctions, and labor shortages drive prices up; the central bank has kept key rates at very high levels for years.\r\n\t<\/p>\r\n\t<p>\r\n\t\tJapan, on the other hand, represented the opposite problem for decades \u2013 deflation and zero interest rates \u2013 and has only experienced notable inflation rates again since 2022.\r\n\t<\/p>\r\n\t<figure>\r\n\t\t<svg viewBox=\"0 0 800 430\" width=\"100%\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Line chart: Inflation rates in Germany, USA, and Eurozone 2020 to 2024 in comparison\">\r\n\t\t\t<rect x=\"0\" y=\"0\" width=\"800\" height=\"430\" fill=\"#ffffff\"\/>\r\n\t\t\t<text x=\"400\" y=\"26\" text-anchor=\"middle\" font-family=\"sans-serif\" font-size=\"17\" font-weight=\"bold\" fill=\"#1f2d3d\">Inflation Comparison: Germany, USA, Eurozone (2020\u20132024)<\/text>\r\n\t\t\t<!-- Grid -->\r\n\t\t\t<g font-family=\"sans-serif\" font-size=\"12\" fill=\"#7a8894\">\r\n\t\t\t\t<line x1=\"70\" y1=\"340\" x2=\"740\" y2=\"340\" stroke=\"#c9d2da\" stroke-width=\"1\"\/>\r\n\t\t\t\t<line x1=\"70\" y1=\"273\" x2=\"740\" y2=\"273\" stroke=\"#e4e9ee\" stroke-width=\"1\"\/>\r\n\t\t\t\t<line x1=\"70\" y1=\"207\" x2=\"740\" y2=\"207\" stroke=\"#e4e9ee\" stroke-width=\"1\"\/>\r\n\t\t\t\t<line x1=\"70\" y1=\"140\" x2=\"740\" y2=\"140\" stroke=\"#e4e9ee\" stroke-width=\"1\"\/>\r\n\t\t\t\t<line x1=\"70\" y1=\"73\" x2=\"740\" y2=\"73\" stroke=\"#e4e9ee\" stroke-width=\"1\"\/>\r\n\t\t\t\t<text x=\"62\" y=\"344\" text-anchor=\"end\">0 %<\/text>\r\n\t\t\t\t<text x=\"62\" y=\"277\" text-anchor=\"end\">2 %<\/text>\r\n\t\t\t\t<text x=\"62\" y=\"211\" text-anchor=\"end\">4 %<\/text>\r\n\t\t\t\t<text x=\"62\" y=\"144\" text-anchor=\"end\">6 %<\/text>\r\n\t\t\t\t<text x=\"62\" y=\"77\" text-anchor=\"end\">8 %<\/text>\r\n\t\t\t<\/g>\r\n\t\t\t<!-- USA -->\r\n\t\t\t<polyline points=\"100,300 250,183 400,73 550,203 700,243\" fill=\"none\" stroke=\"#a63d40\" stroke-width=\"3\" stroke-linejoin=\"round\" stroke-linecap=\"round\"\/>\r\n\t\t\t<!-- Eurozone -->\r\n\t\t\t<polyline points=\"100,330 250,253 400,60 550,160 700,260\" fill=\"none\" stroke=\"#8a97a5\" stroke-width=\"3\" stroke-dasharray=\"8 6\" stroke-linejoin=\"round\" stroke-linecap=\"round\"\/>\r\n\t\t\t<!-- Germany -->\r\n\t\t\t<polyline points=\"100,323 250,237 400,110 550,143 700,267\" fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"3.5\" stroke-linejoin=\"round\" stroke-linecap=\"round\"\/>\r\n\t\t\t<g fill=\"#1f4e79\">\r\n\t\t\t\t<circle cx=\"100\" cy=\"323\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"250\" cy=\"237\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"400\" cy=\"110\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"550\" cy=\"143\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"700\" cy=\"267\" r=\"4\"\/>\r\n\t\t\t<\/g>\r\n\t\t\t<g fill=\"#a63d40\">\r\n\t\t\t\t<circle cx=\"100\" cy=\"300\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"250\" cy=\"183\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"400\" cy=\"73\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"550\" cy=\"203\" r=\"4\"\/>\r\n\t\t\t\t<circle cx=\"700\" cy=\"243\" r=\"4\"\/>\r\n\t\t\t<\/g>\r\n\t\t\t<!-- Legend -->\r\n\t\t\t<g font-family=\"sans-serif\" font-size=\"13\" fill=\"#1f2d3d\">\r\n\t\t\t\t<line x1=\"90\" y1=\"385\" x2=\"130\" y2=\"385\" stroke=\"#1f4e79\" stroke-width=\"3.5\"\/>\r\n\t\t\t\t<text x=\"138\" y=\"390\">Germany (CPI)<\/text>\r\n\t\t\t\t<line x1=\"300\" y1=\"385\" x2=\"340\" y2=\"385\" stroke=\"#a63d40\" stroke-width=\"3\"\/>\r\n\t\t\t\t<text x=\"348\" y=\"390\">USA (CPI)<\/text>\r\n\t\t\t\t<line x1=\"470\" y1=\"385\" x2=\"510\" y2=\"385\" stroke=\"#8a97a5\" stroke-width=\"3\" stroke-dasharray=\"8 6\"\/>\r\n\t\t\t\t<text x=\"518\" y=\"390\">Eurozone (HICP)<\/text>\r\n\t\t\t<\/g>\r\n\t\t\t<!-- x-axis -->\r\n\t\t\t<g font-family=\"sans-serif\" font-size=\"12\" fill=\"#7a8894\" text-anchor=\"middle\">\r\n\t\t\t\t<text x=\"100\" y=\"362\">2020<\/text>\r\n\t\t\t\t<text x=\"250\" y=\"362\">2021<\/text>\r\n\t\t\t\t<text x=\"400\" y=\"362\">2022<\/text>\r\n\t\t\t\t<text x=\"550\" y=\"362\">2023<\/text>\r\n\t\t\t\t<text x=\"700\" y=\"362\">2024<\/text>\r\n\t\t\t<\/g>\r\n\t\t\t<text x=\"400\" y=\"416\" text-anchor=\"middle\" font-family=\"sans-serif\" font-size=\"11\" fill=\"#7a8894\">Annual averages. Sources: Destatis, U.S. Bureau of Labor Statistics, Eurostat<\/text>\r\n\t\t<\/svg>\r\n\t\t<figcaption>\r\n\t\t\tThe 2021\u20132023 inflation wave hit all major economic areas \u2013 the US earlier and with faster stabilization, the Eurozone with the highest peak in 2022.\r\n\t\t<\/figcaption>\r\n\t<\/figure>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>Inflation 2026 and 2027: The Current Forecast<\/h2>\r\n\t<p>\r\n\t\tWhat lies ahead? Deutsche Bundesbank significantly revised its inflation forecast for Germany upwards in June 2026 due to increased energy prices:\r\n\t<\/p>\r\n\t<div class=\"mri-table-overflow\">\r\n\t\t<table>\r\n\t\t\t<thead>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tYear\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tExpected Inflation (HICP, Bundesbank projection June 2026)\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/thead>\r\n\t\t\t<tbody>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2026<\/td>\r\n\t\t\t\t\t<td>2.9 %<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2027<\/td>\r\n\t\t\t\t\t<td>2.7 %<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td>2028<\/td>\r\n\t\t\t\t\t<td>1.9 %<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/tbody>\r\n\t\t<\/table>\r\n\t<\/div>\r\n\t<p>\r\n\t\tExpected inflation for 2026 is thus clearly above the previous year \u2013 the 2 percent target is only expected to be reached again in 2028. Important context: inflation forecasts carry considerable uncertainty. As late as late 2025, most institutes projected rates around 2% for 2026; the energy price shock in spring overturned these expectations within just a few months.\r\n\t<\/p>\r\n\t<p>\r\n\t\tThree factors are particularly critical for the 2026\/2027 forecast: further oil price developments and the situation in the Persian Gulf, wage settlements (keyword: wage-price spiral amid persistently high service inflation), and ECB monetary policy.\r\n\t<\/p>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>Inflation and Interest Rates: The Role of the ECB<\/h2>\r\n\t<p>\r\n\t\tInflation and interest rates are closely linked: the key interest rate is the central banks&#8217; primary tool against inflation that is too high (or too low). When the ECB raises rates, loans become more expensive for businesses and consumers, and saving becomes more attractive. Demand for goods, real estate, and investments falls \u2013 easing price pressure. Conversely, rate cuts stimulate the economy, but can fuel inflation.\r\n\t<\/p>\r\n\t<figure>\r\n\t\t<svg viewBox=\"0 0 800 200\" width=\"100%\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Line diagram: Chain of effects of an ECB key rate hike\">\r\n\t\t\t<rect x=\"0\" y=\"0\" width=\"800\" height=\"200\" fill=\"#ffffff\"\/>\r\n\t\t\t<g font-family=\"sans-serif\" font-size=\"14\" fill=\"#1f2d3d\">\r\n\t\t\t\t<rect x=\"20\" y=\"65\" width=\"160\" height=\"70\" fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"2.5\" rx=\"8\"\/>\r\n\t\t\t\t<text x=\"100\" y=\"95\" text-anchor=\"middle\">ECB raises<\/text>\r\n\t\t\t\t<text x=\"100\" y=\"115\" text-anchor=\"middle\">key interest rate<\/text>\r\n\t\t\t\t<rect x=\"220\" y=\"65\" width=\"160\" height=\"70\" fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"2.5\" rx=\"8\"\/>\r\n\t\t\t\t<text x=\"300\" y=\"95\" text-anchor=\"middle\">Loans become<\/text>\r\n\t\t\t\t<text x=\"300\" y=\"115\" text-anchor=\"middle\">more expensive<\/text>\r\n\t\t\t\t<rect x=\"420\" y=\"65\" width=\"160\" height=\"70\" fill=\"none\" stroke=\"#1f4e79\" stroke-width=\"2.5\" rx=\"8\"\/>\r\n\t\t\t\t<text x=\"500\" y=\"95\" text-anchor=\"middle\">Consumption &amp;<\/text>\r\n\t\t\t\t<text x=\"500\" y=\"115\" text-anchor=\"middle\">investment decrease<\/text>\r\n\t\t\t\t<rect x=\"620\" y=\"65\" width=\"160\" height=\"70\" fill=\"none\" stroke=\"#3b8c6e\" stroke-width=\"2.5\" rx=\"8\"\/>\r\n\t\t\t\t<text x=\"700\" y=\"95\" text-anchor=\"middle\" fill=\"#3b8c6e\">Price pressure<\/text>\r\n\t\t\t\t<text x=\"700\" y=\"115\" text-anchor=\"middle\" fill=\"#3b8c6e\">eases<\/text>\r\n\t\t\t<\/g>\r\n\t\t\t<g fill=\"none\" stroke=\"#1f2d3d\" stroke-width=\"2.5\">\r\n\t\t\t\t<path d=\"M 184 100 L 214 100 M 205 92 L 214 100 L 205 108\"\/>\r\n\t\t\t\t<path d=\"M 384 100 L 414 100 M 405 92 L 414 100 L 405 108\"\/>\r\n\t\t\t\t<path d=\"M 584 100 L 614 100 M 605 92 L 614 100 L 605 108\"\/>\r\n\t\t\t<\/g>\r\n\t\t<\/svg>\r\n\t\t<figcaption>\r\n\t\t\tHow a key rate hike acts against inflation \u2013 albeit with a lag of several months.\r\n\t\t<\/figcaption>\r\n\t<\/figure>\r\n\t<p>\r\n\t\tIn practice, this recently meant: against the 2022\/2023 inflation wave, the ECB raised key rates at record speed from 0% to over 4%. As price increases calmed down, interest rate cuts followed from 2024 onwards \u2013 until rising energy prices in 2026 forced the central bank to counter once again: in June 2026, it raised interest rates by 0.25 percentage points. For savers, the crucial metric is always the real interest rate \u2013 interest after deducting inflation.\r\n\t<\/p>\r\n\t<p>\r\n\t\t<strong>Example<\/strong>: If your call money yields 2% interest with inflation at 2.9%, you lose around 0.9% real purchasing power per year \u2013 despite a nominally growing account balance. What rising interest rates mean for the real estate market is further explored in our article <a href=\"https:\/\/meine-renditeimmobilie.de\/en\/real-estate-bubble\/\">When will the real estate bubble burst?<\/a>.\r\n\t<\/p>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>Consequences of Inflation: Who Wins, Who Loses?<\/h2>\r\n\t<p>\r\n\t\tThe consequences of inflation are distributed very unevenly. Put simply: creditors and savers lose, while debtors and owners of tangible assets tend to benefit.\r\n\t<\/p>\r\n\t<div class=\"mri-table-overflow\">\r\n\t\t<table>\r\n\t\t\t<thead>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\t&nbsp;\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tLosers of Inflation\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t\t<th>\r\n\t\t\t\t\t\tProfiteers of Inflation\r\n\t\t\t\t\t<\/th>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/thead>\r\n\t\t\t<tbody>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td><strong>Who?<\/strong><\/td>\r\n\t\t\t\t\t<td>Savers with instant access accounts, cash, non-interest-bearing deposits; fixed income earners; creditors<\/td>\r\n\t\t\t\t\t<td>Borrowers, heavily indebted states, owners of tangible assets (real estate, stocks)<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td><strong>Why?<\/strong><\/td>\r\n\t\t\t\t\t<td>Nominal balances and fixed payments lose real value<\/td>\r\n\t\t\t\t\t<td>The real value of debt shrinks, while tangible assets and often rents rise with prices<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t\t<tr>\r\n\t\t\t\t\t<td><strong>Example<\/strong><\/td>\r\n\t\t\t\t\t<td>\u20ac100,000 in an account is worth only about \u20ac74,400 in real terms after 10 years at 3% inflation<\/td>\r\n\t\t\t\t\t<td>A real estate loan of \u20ac100,000 &#8220;shrinks&#8221; in real terms by the same effect over the same period<\/td>\r\n\t\t\t\t<\/tr>\r\n\t\t\t<\/tbody>\r\n\t\t<\/table>\r\n\t<\/div>\r\n\t<h3>No Pay Raise Despite Inflation? The Real Wage Effect<\/h3>\r\n\t<p>\r\n\t\tFor employees, the critical metric is real wage: if your salary grows slower than prices, you earn less in real terms \u2013 even without a pay cut. This happened to many employees in Germany in 2022\/2023: real wages temporarily fell more sharply than they had in decades because wage increases lagged behind inflation.\r\n\t<\/p>\r\n\t<p>\r\n\t\tAnyone who receives no salary increase despite inflation loses around 14% purchasing power in just five years at 3% inflation. A salary adjustment at least equal to the inflation rate is therefore a legitimate argument in any salary negotiation \u2013 many collective bargaining agreements now explicitly reference price trends.\r\n\t<\/p>\r\n\t<h3>Excursus: Lifestyle Inflation<\/h3>\r\n\t<p>\r\n\t\tNot to be confused with macroeconomic inflation is so-called lifestyle inflation: this refers to people automatically increasing their spending as their income rises \u2013 a larger apartment, a more expensive car, dining out more frequently.\r\n\t<\/p>\r\n\t<p>\r\n\t\tThe result resembles true inflation: despite a higher salary, no more money remains at the end of the month. Anyone aiming to build wealth should therefore direct income increases at least partially into <a href=\"https:\/\/meine-renditeimmobilie.de\/en\/investment-blog\/\">capital investments<\/a> rather than consumption.\r\n\t<\/p>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>Protection Against Inflation: How Do I Protect My Money?<\/h2>\r\n\t<p>\r\n\t\tThe most important rule for protecting against inflation is: do not hold more money than necessary in nominal assets (cash, instant access savings, non-interest accounts), but invest long-term in real assets and productive investments. A detailed overview listing the pros and cons of all asset classes can be found in our post on <a href=\"https:\/\/meine-renditeimmobilie.de\/en\/inflation-proof-investment\/\">inflation-proof investments<\/a>. The main options at a glance:\r\n\t<\/p>\r\n\t<ol>\r\n\t\t<li>\r\n\t\t\t<strong>Real Estate:<\/strong> The classic tangible asset. Property prices and rents tend to rise with inflation in the long term, while inflation reduces the real burden of existing financing. We explain how this dual effect works in detail under <a href=\"https:\/\/meine-renditeimmobilie.de\/en\/real-estate-and-inflation\/\">Real Estate and Inflation<\/a>.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\t<strong>Stocks and ETFs:<\/strong> Stocks during inflation? Long-term yes \u2013 companies can pass on rising costs through higher prices, and productive assets grow in real terms. In the short term, however, stock markets often suffer under rate hikes that accompany high inflation.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\t<strong>Inflation-indexed Bonds:<\/strong> For these securities (e.g., inflation-linked federal bonds), interest and principal repayments are tied to the consumer price index \u2013 direct, but low-yielding inflation protection.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\t<strong>Gold and Commodities:<\/strong> Gold is viewed as a crisis currency and has preserved purchasing power over very long periods, but yields no ongoing returns and fluctuates heavily.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\t<strong>Call Money and Fixed Deposits:<\/strong> Only useful for liquidity reserves. If interest rates remain below the inflation rate, real interest is negative \u2013 guaranteeing a loss of purchasing power.\r\n\t\t<\/li>\r\n\t<\/ol>\r\n\t<p>\r\n\t\tComparison calculation: Assuming inflation averages 2.5% per year, \u20ac50,000 in a non-interest-bearing account will have a purchasing power of only around \u20ac34,500 after 15 years. The same \u20ac50,000, invested as equity in a rental property with a 4% total yield, grows nominally to around \u20ac90,000 \u2013 in real terms (adjusted for inflation), this still corresponds to roughly \u20ac62,000 in today&#8217;s purchasing power. The difference between &#8220;leaving money idle&#8221; and &#8220;investing&#8221; is almost double in this example.\r\n\t<\/p>\r\n\t<p>\r\n\t\tFind more fundamentals and current analyses on real estate as an investment at <a href=\"https:\/\/meine-renditeimmobilie.de\/en\/\">meine-renditeimmobilie.de<\/a> as well as in our article overview on the topic of <a href=\"https:\/\/meine-renditeimmobilie.de\/en\/blog-inflation-cycle\/\">inflation<\/a>.\r\n\t<\/p>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>Frequently Asked Questions About Inflation<\/h2>\r\n\t<h3>What is inflation \u2013 in one sentence?<\/h3>\r\n\t<p>\r\n\t\tInflation is the sustained increase in the general price level, causing money to lose purchasing power \u2013 simply explained: for the same euro, you get less tomorrow than today.\r\n\t<\/p>\r\n\t<h3>How high is inflation in Germany currently?<\/h3>\r\n\t<p>\r\n\t\tCurrently 2.3% (June 2026, CPI compared to same month last year). The latest figure is published by the Federal Statistical Office at the end of each month.\r\n\t<\/p>\r\n\t<h3>How high was inflation in 2024 and 2025?<\/h3>\r\n\t<p>\r\n\t\tInflation in Germany averaged 2.2% in both 2024 and 2025. In December 2025, the monthly rate even dropped to 1.8% \u2013 before the early 2026 energy price increase pushed inflation back up.\r\n\t<\/p>\r\n\t<h3>What is the opposite of inflation?<\/h3>\r\n\t<p>\r\n\t\tThe opposite of inflation is called deflation \u2013 a sustained decrease in price levels that can paralyze consumption and investment, which central banks fight just as aggressively as excessively high inflation.\r\n\t<\/p>\r\n\t<h3>Why is 2% inflation the goal \u2013 and not 0%?<\/h3>\r\n\t<p>\r\n\t\tSlight inflation serves as economic lubricant: it maintains a safety margin from dangerous deflation, facilitates wage and price adjustments, and gives monetary policy room to maneuver. That is why the ECB and most major central banks define price stability as 2% inflation \u2013 not 0%.\r\n\t<\/p>\r\n\t<h3>Is inflation good for property owners?<\/h3>\r\n\t<p>\r\n\t\tGenerally yes: asset value and rental income tend to rise with price levels long-term, while existing debt is devalued in real terms. However, location, financing structure, and interest rate environment matter \u2013 details in our article <a href=\"https:\/\/meine-renditeimmobilie.de\/en\/real-estate-and-inflation\/\">Real Estate and Inflation<\/a>.\r\n\t<\/p>\r\n<\/section>\r\n","protected":false},"excerpt":{"rendered":"<p>Inflation in Germany currently stands at 2.3% (June 2026, consumer price index compared to the same month last year). Following [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":12051,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_locale":"en_US","_original_post":"https:\/\/meine-renditeimmobilie.de\/?p=3369","footnotes":""},"categories":[182],"tags":[],"post_folder":[119],"class_list":["post-5912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inflation-cycle","en-US"],"_links":{"self":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts\/5912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/comments?post=5912"}],"version-history":[{"count":13,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts\/5912\/revisions"}],"predecessor-version":[{"id":6200,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts\/5912\/revisions\/6200"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/media\/12051"}],"wp:attachment":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/media?parent=5912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/categories?post=5912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/tags?post=5912"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/post_folder?post=5912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}