Butter is getting cheaper: Lidl, Aldi & Co. are lowering their prices

Neckarsulm. Butter prices for consumers in Germany continue to fall. Major retail chains are reducing the price of a 250-gram pack of their own-brand German butter by 20 cents, or about a tenth, to €1.79 . This was the result of a survey by the German Press Agency (dpa). Other butter products are also expected to become cheaper.

First, discounter Lidl announced it would lower butter prices. This set off a spiral: Aldi Nord and Süd, as well as Edeka, Rewe, Netto, Norma, and Penny, subsequently announced lower prices for their own brands. When individual retailers permanently reduce price-point items like butter, others usually follow quickly.

Butter prices have been declining since the beginning of February 2025. In October 2024, customers had to pay €2.39 for the cheapest package of German branded butter—a historic high. According to experts, the reasons for this were smaller milk quantities, a lower fat content in raw milk, and bluetongue disease, which affected the milk yield of many cows in the summer of 2024.

By comparison, in the summer of 2023, the price of private label butter was temporarily as low as €1.39, while branded products generally remained significantly more expensive. The current price reduction of around 20 cents to €1.79 is therefore a positive outlier in a market characterized by strong fluctuations in recent years. For consumers, this represents a noticeable relief in their everyday lives.

Despite falling butter prices, the inflation rate in Germany rose to 2.2 percent in August 2025 compared to the same month last year. The Federal Statistical Office published this in a press release on September 12, 2025. This means that, on average, goods and services cost 2.2 percent more than a year earlier.

Some areas became cheaper: Energy products , such as electricity, gas, heating oil, and fuels, became cheaper by 2.4 percent. Other products, however, became more expensive: Food prices overall rose by 2.5 percent, and dairy products and eggs even increased by an average of 3.2 percent . Butter and other milk fat products are an exception – they became cheaper.

This shows that individual price reductions, such as for butter, can only reduce overall inflation to a limited extent , but are noticeable for consumers in their everyday lives. Core inflation – inflation excluding short-term and volatile energy and food prices – was 2.7 percent in August. Services, such as hairdressers, insurance, and medical expenses, rose by 3.1 percent.

Butter isn't the only thing currently becoming cheaper: vegetables (-1.1%) and olive oil (-22.6%) also fell in price compared to the same month last year. In contrast, prices for fruit (+7.1%), sugar confectionery (+6.9%), and chocolate (+21.3%) rose, some significantly. Consumers can therefore benefit from targeted price reductions, while other food items remain significantly more expensive.

dpa/nk