Germany’s Producer Price Index (PPI) extended its decline at the start of the year, with prices falling 3.0% year-over-year in January 2026, compared with a 2.5% drop in December 2025. The latest figures, updated on 20 February 2026, underscore continuing deflationary pressure at the producer level in Europe’s largest economy.
Measured on a year-over-year basis, the January reading shows that factory-gate prices in Germany are falling at a faster pace than in the previous month, when the index was down 2.5% versus December a year earlier. The current “actual” figure reflects the change in January 2026 relative to January 2025, while the “previous” figure captures the change in December 2025 relative to December 2024.
The deepening decline in producer prices may have implications for corporate margins and pricing power, and will likely be monitored closely by policymakers and markets as a signal of underlying cost dynamics in the German industrial sector.
