German producer prices fall more than expected in December

German producer prices fell by 2.5 percent in December surpassing analyst expectations. This deflationary signal highlights ongoing price pressures at the factory level.

Insights:
On Tuesday, January 20, 2026, the German Federal Statistics Office reported that producer prices in Germany DEDE fell 2.5% in December 2025 compared to a year earlier. This decline slightly exceeded the expectations of analysts polled by Reuters, who had forecasted a 2.4% drop. As the largest economy in the Eurozone economy, Germany's producer price index provides a crucial look at price pressures that often precede changes in consumer inflation.
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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