German Producer Prices Drop the Most in 20 Months
2026-01-20 07:05
By
Chusnul Chotimah
1 min. read
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%.