German producer prices decline by 2.5 percent in December exceeding analyst expectations

German producer prices fell 2.5 percent year-over-year in December 2025. This slightly larger than expected decline points to cooling inflation in the region.

Insights:
The German Federal Statistics Office reported on January 20, 2026, that producer prices in Germany DEDEfell by 2.5 percent year-over-year in December 2025. This figure represents a slightly more significant drop than anticipated by market participants. Reuters analysts polled prior to the release had expected a 2.4 percent decline, meaning the actual result exceeded the consensus forecast by 0.1 percentage points.
A view of the vegetables kept on display at the International Green Week agriculture fair in Berlin, Germany January 19, 2024. REUTERS/Annegret Hilse
A view of the vegetables kept on display at the International Green Week agriculture fair in Berlin, Germany January 19, 2024. REUTERS/Annegret Hilse
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