FX.co ★ German Producer Prices Continue to Slide in December, Indicating Economic Challenges

Germany's Producer Price Index (PPI) has continued its downward trajectory in December 2025, with the indicator dropping to -2.5%, according to the latest data updated on 20 January 2026. This follows a similar contraction in November 2025 when the PPI was recorded at -2.3%.

The year-over-year comparison underscores a challenging economic landscape for German producers as they grapple with declining input costs and pressure on pricing power. The shift from November's rate of -2.3% to December's -2.5% reflects an acceleration in the downward trend of producer prices.

These continued deflationary pressures in the producer segment raise concerns about the broader economic impact, as prolonged decreases in the PPI may signal weakening demand and supply chain issues within Germany's industrial sectors. Economists will be closely watching these figures in the coming months to assess the potential need for policy interventions to stabilize the market.