Producer prices in the Euro Zone fell further in January 2026, underscoring persistent disinflationary pressures at the industrial level. Euro area PPI declined 2.1% year-over-year in January, a marginal acceleration in the rate of decline compared with December 2025, when prices were down 2.0% on an annual basis.
The data, updated on 4 March 2026, show that factory-gate prices are now falling slightly faster than in the previous month when measured against the same period a year earlier. Both the current and previous readings are based on year-over-year comparisons, with January 2026 PPI measured against January 2025, and December 2025 PPI measured against December 2024.
While the shift from -2.0% to -2.1% is modest, the continued negative readings highlight ongoing weakness in upstream price dynamics across the currency bloc. Investors and policymakers will be watching whether this deeper, though still mild, deflation in producer prices feeds through to consumer inflation and influences the future path of monetary policy in the Euro Zone.
