FX.co ★ German Producer Prices Fall Most Since 2024

Germany’s producer prices fell by 3.3% year-on-year in February 2026, after a 3.0% decline in January and compared with market expectations of a 2.7% decrease. This marked the steepest drop since April 2024, driven primarily by a sharper fall in energy prices (-12.5% vs. -11.8% in January), particularly for natural gas (-14.3%) and electricity (-13.4%).

Price increases slowed for capital goods (1.7% vs. 1.8%), intermediate goods (1.1% vs. 1.2%), and durable consumer goods (2.0% vs. 2.1%), while prices for non-durable consumer goods declined further (-0.6% vs. -0.2%). Excluding energy, producer prices rose by 1.0% year-on-year, easing from a 1.3% increase in the previous month.

On a monthly basis, producer prices decreased by 0.5% in February, following a 0.6% drop in January and defying market forecasts, which had pointed to a 0.3% increase.