German Producer Prices Fall the Most in 19 Months

Producer prices in Germany fell 2.5% yoy in December 2025, following a 2.3% decline in November and compared with market expectations of a 2.4% fall. This marked the tenth consecutive month of annual producer price declines and the steepest drop since April 2024, primarily driven by lower energy costs, which fell 9.7%. Key contributors within the energy sector included natural gas (-14.6%), electricity (-11.1%), mineral oil products (-6.6%), and district heating (-0.2%). Excluding energy, producer prices advanced 0.9%, after a 0.8% gain in November. By contrast, price increases were recorded for non-durable consumer goods (0.6%), durable consumer goods (1.8%), and capital goods (2.0%). Intermediate goods also climbed 0.3%, due to higher metal prices. Monthly, the producer price index declined 0.2% in December, in line with expectations, after being flat in November, marking the first monthly decrease in three months. For the full year 2025, producer price deflation averaged 1.2%.

Producer prices in Germany dropped 2.3% year-on-year in November 2025, following a 1.8% decline in October and compared with market expectations of a 2.2% fall. This marked the ninth consecutive month of annual producer price declines and the steepest fall since April 2024, primarily driven by lower energy costs, which fell 9.0%. Key contributors within the energy sector included natural gas (-14.2%), electricity (-11.6%), mineral oil products (-2.6%), and district heating (-0.2%). Prices for intermediate goods also dropped 0.2%. Conversely, price increases were recorded for non-durable consumer goods (1.3%), durable consumer goods (1.8%), and capital goods (1.9%). Excluding energy, producer prices climbed 0.8%, the same pace as in October. On a monthly basis, the producer price index was unexpectedly unchanged in November, missing expectations of a 0.1% rise, after a 0.1% gain in October.

Producer prices in Germany fell 1.8% year-on-year in October 2025, following a 1.7% decline in September and compared with market expectations of a 1.9% drop. This marked the eighth consecutive month of annual producer price declines. The overall decrease was primarily driven by lower energy costs, which fell 7.5%. Key contributors within the energy sector included natural gas (-12.1%), electricity (-8.3%), mineral oil products (-4.3%), and heating oil (-2.7%). Prices for intermediate goods also decreased 0.5%. In contrast, price increases were recorded for non-durable consumer goods (2.3%), durable consumer goods (1.7%), and capital goods (1.9%). Excluding energy, producer prices rose 0.8%, after a 0.9% increase in September. On a monthly basis, the producer price index unexpectedly edged up 0.1% in October, missing expectations for a flat reading, after a 0.1% decline in September