Euro Zone producer prices fell by 0.3% month-over-month in December 2025, marking a reversal from the 0.7% increase recorded in November 2025, according to data updated on 4 February 2026. The latest Producer Price Index (PPI) reading points to easing price pressures at the factory gate as the year closed.
On a month-over-month basis, the December figure shows that input costs for producers declined compared with November, when prices had risen notably from the previous month. The shift from a positive to a negative rate suggests a moderation in upstream inflation, which could, over time, feed through to consumer prices and influence expectations around monetary policy in the Euro Zone.
The data underscore a cooling in producer-level inflation momentum after a brief uptick in November. As PPI reflects changes in prices received by domestic producers for their output, the negative print in December may signal some relief for businesses facing cost pressures and could be a factor watched closely by investors and policymakers tracking the region’s inflation trajectory.
